The FHLBanks' debt securities (also known as consolidated obligations) are rated by both S&P Global Ratings (S&P) and Moody's Investors Service (Moody's). All long-term consolidated obligations issued by the FHLBanks are rated AA+ by S&P and Aaa by Moody's. All short-term consolidated obligations issued by the FHLBanks are rated A-1+ by S&P and P-1 by Moody's.
These ratings reflect the FHLBanks' status as government-sponsored enterprises (GSEs) and indicate that these rating agencies believe the FHLBanks have the capacity to meet their commitments to pay principal and interest on consolidated obligations. The FHLBanks' consolidated obligations have historically received the same credit rating as the government bond credit rating of the United States, even though the consolidated obligations are not obligations of the United States and are not guaranteed by the United States.
S&P, Moody's, or other rating organizations could downgrade or upgrade the credit rating of the U.S. government and GSEs, including the FHLBanks and their consolidated obligations. Investors should note that a rating issued by a nationally recognized statistical rating organization is not a recommendation to buy, sell, or hold securities, and that the ratings may be revised or withdrawn by a nationally recognized statistical rating organization at any time. Investors should evaluate the rating of each nationally recognized statistical rating organization independently. Investors should not take the historical or current ratings of the FHLBanks and their consolidated obligations as an indication of future ratings for the FHLBanks or their consolidated obligations.