S&P: Outlook Improved for Seattle FHLBank

Standard & Poor's has changed its outlook on the Seattle Federal Home Loan Bank from "negative" to "stable" in response to an announcement that the Federal Housing Finance Board has terminated a supervisory agreement the regulator imposed on the bank two years ago.The Seattle FHLBank got into trouble because of its mortgage purchase program, and the credit rating agency commented that its turnaround efforts have been successful so far and that the bank's profitability should improve over the next several years. "We believe the Finance Board's termination of the written agreement reflects the significant progress the FHLB-Seattle has made in readjusting its business mix and risk management practices, as well as in strengthening its capitalization," S&P said. The rating agency also reaffirmed the Seattle bank's AA+/1A-1+ counterparty credit rating. The Seattle bank can be found online at http://www.fhlbsea.com.