Standard & Poor’s Rating Service recently revised its outlook on the Federal Home Loan Bank of Des Moines from negative to stable. At the same time, S&P analysts affirmed FHLB-Des Moines’ credit rating of AAA/A-1+.

“The outlook revision reflects the performance stability the new management team has achieved in shifting its business model to emphasize growing member advances and reducing reliance on mortgage partnership financing loans,” S&P credit analyst Vikas Jhaveri said in an April 9 release. “Senior management turnover has subsided and the current management structure is permanent.”

FHLB-Des Moines, which provides low-cost funds to member financial institutions, had held a negative outlook from S&P since September 2006, though its credit ratings remained unchanged.

Jhaveri said FHLB’s credit ratings “continue to reflect the wholesale bank’s strong asset quality, balance-sheet liquidity, conservative risk management and risk-adjusted capitalization,” as well as its access to low-cost funding as a government-sponsored enterprise.

In 2007 the bank’s total assets increased 45 percent to $60.8 billion and total liabilities increased 45 percent to $57.7 billion. Last year its portfolio of advances to member institutions increased by $18.5 billion, or 85 percent, due to increased activity in response to the market credit and liquidity crisis that began in the second half of the year.