https://ratings.moodys.com/ratings-news/443242

New York, May 19, 2025 -- Moody's Ratings (Moody's) has downgraded to Aa1 from Aaa the long-term senior unsecured debt ratings of Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac), Federal Home Loan Banks (FHLBank System), Federal Farm Credit Banks (Farm Credit System) and Resolution Funding Corporation (REFCO). The rating outlooks on FHLBank System's and Farm Credit System's Aa1 senior unsecured ratings were changed to stable from negative. Fannie Mae and Freddie Mac's outlooks were also changed to stable from negative.

Private Export Funding Corporation's (PEFCO) local currency senior secured debt rating, senior secured MTN program rating, and backed senior secured rating were downgraded to Aa1 from Aaa, to (P)Aa1 from (P)Aaa, and to Aa1 from Aaa, respectively. PEFCO's local currency senior unsecured debt rating and senior unsecured MTN program rating were downgraded to Aa2 from Aa1, and to (P)Aa2 from (P)Aa1, respectively.  The outlook on PEFCO was changed to stable from negative.

In addition, we downgraded to Aa1 from Aaa the long-term bank deposit ratings of all eleven regional Federal Home Loan Banks, including Federal Home Loan Bank of Atlanta, Federal Home Loan Bank of Boston, Federal Home Loan Bank of Chicago, Federal Home Loan Bank of Cincinnati, Federal Home Loan Bank of Dallas, Federal Home Loan Bank of Des Moines, Federal Home Loan Bank of Indianapolis, Federal Home Loan Bank of New York, Federal Home Loan Bank of Pittsburgh, Federal Home Loan Bank of San Francisco and Federal Home Loan Bank of Topeka. The rating outlooks on each of the Federal Home Loan Banks' long-term deposit ratings were changed to stable from negative.

We also affirmed the FHLBank System's Prime-1 short-term issuer rating. We affirmed the Prime-1 short-term bank deposit ratings and a1 baseline credit assessments (BCAs) of Federal Home Loan Bank of Atlanta, Federal Home Loan Bank of Boston, Federal Home Loan Bank of Chicago, Federal Home Loan Bank of Cincinnati, Federal Home Loan Bank of Dallas, Federal Home Loan Bank of Des Moines, Federal Home Loan Bank of Indianapolis, Federal Home Loan Bank of New York, Federal Home Loan Bank of Pittsburgh, Federal Home Loan Bank of San Francisco and Federal Home Loan Bank of Topeka.

We also affirmed the Farm Credit System's (P)Prime-1 other short-term rating. We affirmed the Aa3 long-term issuer ratings and a1 BCAs of AgFirst Farm Credit Bank, AgriBank, FCB and The Farm Credit Bank of Texas. The Farm Credit Bank of Texas' Baa1 (hyb) preferred stock non-cumulative rating was also affirmed. The outlooks on the long-term issuer ratings of AgFirst Farm Credit Bank, AgriBank FCB and The Farm Credit Bank of Texas remain stable.

We also affirmed the Prime-1 other short-term ratings of Fannie Mae and Freddie Mac, Fannie Mae's Ca (hyb), and Freddie Mac's Ca preferred stock non-cumulative ratings.

The Prime-1 local currency commercial paper ratings of PEFCO were also affirmed.

The rating actions follow the 16 May 2025 downgrade of the Government of United States of America (US Government) to Aa1 with a stable outlook from Aaa with a negative outlook ("Moody's Ratings downgrades United States ratings to Aa1 from Aaa; changes outlook to stable", https://ratings.moodys.com/ratings-news/443154).

A full list of affected ratings and outlooks is available at the end of this press release.