S&P Global Ratings upgraded Compeer Financial ACA's long-term issuer credit rating to BBB+ from BBB.
The outlook is stable, which reflects the rating agency's expectation that the company will continue to report good earnings and credit quality as well as a risk-adjusted capital ratio well above 15% over the next two years. The rating agency also expects the company to extend its funding agreement with AgriBank to three years.
S&P said the company sustained its solid track record of strong earnings, low credit losses and strong capital, since merging with two other farm credit associations in July 2017. The rating agency believes the merger improved the association's franchise.
S&P said it has gained confidence that Compeer will retain its high level of capital. As a result, the rating agency changed its assessment of the company's capital, leverage and earnings score to "very strong" from "strong," leading to the upgrade, the rating agency said.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.
