CFC Update

1
CFC Update
February 11, 2008 Denver, CO
2
CFC Outlook to Positive

• SP improved the outlook on CFCs long-term debt
  obligations to positive from stable
• SP cited improvements in CFCs risk-management
  policies as key driver
• SP joins Fitch Ratings in giving CFC a positive
  outlook

3
CFC Issues Clean Renewable Energy Bonds

• 30.5 million
• Six Cooperatives
• Five States (AZ, IN, KY, MN, VT)
• 27 Projects
• Solar and Wind

4
CFC GT Trend Report

• GT systems increased margins significantly
• Experienced sizable jumps in TIER, equity ratios
  and current assetsindicating increasing
  financial strength and growth in cash
• Interest expense ratio5.8 percenthas been
  extremely stable over five-year period
• Percentage of GT outstanding long-term debt
  funded by RUS and FFB remained steady at 60
• GT generating capacity in excess of 42,000 mw

5
Education Accounting and Finance

• CFC and NRECA developing additional training
  opportunities for cooperative accounting and
  finance staff
• Surveys and focus group results indicate strong
  support for enhanced training opportunities
• CFC and NRECA partnering to refine course content

6
Co-op Financial Policy Statement

• Template to provide financial guidelines and
  direction from a co-ops board to management
• Designed to maintain sound financial position and
  provide for security of co-ops financial
  resources
• Guidelines include setting acceptable financial
  ranges for equity levels, coverage ratios and
  amount of variable-rate debt
• Template available from CFC contact John Grant

7
CFC Best Place to Work

• CFC selected as winner of 2007 CARE Award
• Award recognizes leaders in promoting positive
  work-life balance for employees through company
  policies and benefits
• CFC offers flexible work hours, three-year
  professional development plan for each employee,
  tuition assistance, exercise classes and numerous
  community outreach programs
• CFC provides training opportunities through CFC
  University and encourages employee participation
  on committees and charter teams

8
CFC Annual Meeting

• 39th CFC annual meeting will be held in Anaheim,
  California on February 26
• Keynote speaker is Robert Reich, one of nation's
  leading thinkers about work and the economy
• Reich is professor of public policy at University
  of California at Berkeley and served as nation's
  22nd secretary of labor

9
NCSC Annual MeetingNational Cooperative Services
Corporation

• 27th NCSC annual meeting will be held in Anaheim
  on February 25
• Keynote speaker is Todd Buchholz, an expert on
  global economic trends and a former White House
  director of economic policy

10
CFC Forum

• June 16 18, 2008
• Phoenix, AZ

11
CFC Update

• Thank you