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Advisory Bulletin

Standard & Poor's Rating Action and Risk-based Capital Calculation for Federal Securities

Number: 2011-AB-02
Pertains To: FHLB & Office of Finance
8/9/2011

ADVISORY BULLETIN 2011-AB-02

August 9, 2011

Federal Housing Finance Agency
Division of Examination Programs and Support

To: Federal Home Loan Bank President, Chief Financial Officers, and Chief Executive Officer, Office of Finance

From: Wanda DeLeo,
Deputy Director, Division of Examination Programs and Support
Federal House Finance Agency

Subject: ​Standard & Poor's Rating Action and Risk-based Capital Calculation for Federal Securities

On August 5, 2011, Standard & Poor's rating agency lowered the long-term rating of U.S. government and federal agency securities from AAA to AA+.  With regard to this action, consistent with guidance provided by the federal banking agencies with respect to capital rules, the Federal Housing Finance Agency provides this guidance for the Federal Home Loan Banks: the risk weights for Treasury securities and other securities issued or guaranteed by the U.S. Government, government agencies, and government-sponsored entities do not change for purposes of calculating risk-based capital.

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