"On August 5 and 8, 2011, Standard & Poor's rating agency lowered from AAA to AA+ the long-term issuer and related issue credit ratings of the U.S. government and certain government-related entities, including the Farm Credit System and its consolidated Systemwide debt.

"With regard to the actions, the Farm Credit Administration (FCA) provides the following guidance for the institutions of the Farm Credit System: the risk weights for Treasury securities and other securities issued or guaranteed by the U.S. Government, government agencies, and government-sponsored entities will not change for purposes of calculating risk-based capital.

"The treatment of Treasury securities and other securities issued or guaranteed by the U.S. government, government agencies, and government-sponsored entities under other FCA regulations will also be unaffected.

"This guidance is consistent with the guidance issued by other federal financial regulatory agencies. We will evaluate any other implications for entities regulated by the FCA and issue additional clarification as necessary."

Farm Credit Administration

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