2008-05-28 23:46:19 -

- Fitch has affirmed AgFirst FCB's (AgFirst) long-term Issuer Default Rating (IDR) and short-term IDR at 'AA-' and 'F1+', respectively. The Rating Outlook is Stable.

AgFirst FCB

--Long-term IDR affirmed at 'AA-';

--Short-term IDR affirmed at 'F1+';

--Preferred stock affirmed at 'A';

--Support affirmed at '1';

--Support Floor affirmed at 'A-'.

AgFirst's ratings

reflect stable operating performance, strong asset quality and conservative capital management with ready access to Federal Farm Credit Banks' debt which benefits from its government sponsored enterprise (GSE) status. Diversification of commodity exposures largely mitigates the elevated risk posed by high grain prices and volatility in the commodity markets. AgFirst's capital ratios are well within regulatory guidelines and allow it to grow its loan portfolio and serve its mission of acting as a stable funding source to the District which serves the Central Atlantic and coastal Southeastern U.S.

AgFirst is a Farm Credit Bank and is one of the five banks in the Farm Credit System (FCS; rated 'AAA/F1+' by Fitch). FCS is a GSE created by Congress in 1916 to provide a reliable source of credit and liquidity to the U.S. agricultural sector. The five Banks are jointly and severally liable for the Federal Farm Credit Banks' debt issued by the Federal Farm Credit Bank Funding Corporation as agent on their behalf. While Fitch believes it is extremely likely that AgFirst would be the beneficiary of U.S. government support should it become necessary, AgFirst and its debt are not guaranteed by the U.S. government.

The Stable Outlook reflects Fitch's view that AgFirst is well positioned to sustain its current financial strength even in a scenario of significant stress.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.

Fitch Ratings, New York
Vincent Arscott, 212-908-0872
Sharon Haas, 212-908-0362
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Media Relations:
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