|
| ||||||||||||||||||
| NEW YORK (Standard & Poor's) June 9, 2006--Standard & Poor's Ratings Services said today that National Rural Utilities Cooperative Finance Corp.'s (CFC; A/Stable/A-1) settlement with Innovative Communication Corporation's (ICC) owners favors CFC's credit quality, but does not affect the rating or outlook on CFC at this time. On June 7, 2006, CFC affiliate Rural Telephone Finance Cooperative (RTFC), reached a settlement of litigation over the alleged failure of ICC and Jeffery Prosser, majority shareholder and chairman, to comply with the terms of loan agreements with RTFC. Under the settlement, ICC and Mr. Prosser stipulated to the entry of judgments against them in the District Court for the District of the Virgin Islands. The parties also reached agreement on how the judgments will be satisfied. In addition, as part of the settlement, all counterclaims, affirmative defenses, and other lawsuits alleging wrongful acts of the various parties (including RTFC, certain of its officers and CFC) will be dismissed. Based on preliminary analysis, we concur with CFC's assessment that it is adequately reserved for its exposure to ICC. | ||||||||||||||||||
| |||||||||||||||||||
Analytic services provided by Standard & Poor's Ratings Services (Ratings Services) are the result of separate activities designed to preserve the independence and objectivity of ratings opinions. The credit ratings and observations contained herein are solely statements of opinion and not statements of fact or recommendations to purchase, hold, or sell any securities or make any other investment decisions. Accordingly, any user of the information contained herein should not rely on any credit rating or other opinion contained herein in making any investment decision. Ratings are based on information received by Ratings Services. Other divisions of Standard & Poor's may have information that is not available to Ratings Services. Standard & Poor's has established policies and procedures to maintain the confidentiality of non-public information received during the ratings process. Ratings Services receives compensation for its ratings. Such compensation is normally paid either by the issuers of such securities or third parties participating in marketing the securities. While Standard & Poor's reserves the right to disseminate the rating, it receives no payment for doing so, except for subscriptions to its publications. Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees. |
| Copyright © 1994-2006 Standard & Poor's, a division of The McGraw-Hill Companies. All Rights Reserved. Privacy Notice |  |