AgTexas Farm Credit Services Assigned 'BBB' Rating, Preferred Stock Rated 'BB'; Outlook Stable

AgTexas Farm Credit Services (AgTexas), an agricultural lender operating within the Farm Credit Bank of Texas (FCBT) district, has a record of low credit losses, consistent earnings, strong capital ratios, and access to a low-cost funding source with FCBT. AgTexas has a highly concentrated geographic footprint and concentrated loan exposure to the agricultural industry, which we view somewhat negatively given the cyclical risks. We assigned our 'BBB' issuer credit rating to AgTexas and a 'BB' issue rating to its announced preferred stock issuance, reflecting the risks for deferral and coupon non-payment. The stable outlook reflects our expectation that the company will maintain a very strong risk-adjusted capital (RAC) ratio bolstered by its preferred stock issuance, continuous access to low-cost funding

...September 23, 2021 - AgTexas Farm Credit Services (AgTexas), an agricultural lender operating within the Farm Credit Bank of Texas (FCBT) district, has a record of low credit losses, consistent earnings, strong capital ratios, and access to a low-cost funding source with FCBT. - AgTexas has a highly concentrated geographic footprint and concentrated loan exposure to the agricultural industry, which we view somewhat negatively given the cyclical risks. - We assigned our '###' issuer credit rating to AgTexas and a '##' issue rating to its announced preferred stock issuance, reflecting the risks for deferral and coupon non-payment. - The stable outlook reflects our expectation that the company will maintain a very strong risk-adjusted capital (RAC) ratio bolstered by its preferred stock issuance, continuous access to low-cost funding from FCBT, and stable earnings. NEW YORK (S&P Global Ratings) Sept. 23, 2021-- S&P Global Rating said today it assigned its '###' long-term issuer credit rating...

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