Fitch cuts NACF

Fitch Ratings said it downgraded National Agricultural Cooperative Federation's long-term foreign-currency issuer default rating and foreign-currency senior unsecured rating to A from A+.

The ratings have been removed from Rating Watch negative.

The outlook is stable.

The downgrade follows approval of a revision of the Agricultural Cooperative Law, Fitch said, and the commencement of the business reorganization within the cooperative. The reorganization includes the spin-off of profit-generating entities off NACF's non-profit functions, the agency said.

Fitch said it believes support will be less timely than other major policy banks, given the government majority ownership in these banks and the solvency guarantee in their respective acts.

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