FHLB gets highest Fitch rating

BOSTON – Fitch Ratings has assigned its highest rating to the Federal Home Loan Bank of Boston, a critical source of mortgage funding for many banks and credit unions in the region.
The rating agency said the AAA rating reflects an assumption of U.S. government’s support for the Federal Home Loan Banks System.
The FHLB of Boston is one of 12 banks in the Federal Home Loan Bank system, created in 1932 to provide a reliable source of liquidity to financial institutions to originate mortgages.
The FHLB of Boston, which has about $59 billion in assets, has grappled with investment losses in recent years. It recently resumed issuing dividends to its member bank.