Date: September 30, 2008

On September 30, 2008, Standard & Poor's (S&P) completed a review of Southwest Corporate's ratings. I would like to summarize the results of S&P's latest review.

S&P affirmed Southwest Corporate's ratings at AA (Senior Obligation) and A1+ (Commercial Paper). S&P also revised their outlook from stable to negative.

Southwest Corporate views S&P's affirmation of our ratings during this period of unprecedented stress in the credit markets as a positive confirmation. The change in outlook was not unexpected as such actions are now common for investors in mortgage-backed securities and followed Fitch Ratings similar change in June. Southwest Corporate's S&P long-term rating of AA has been in place since October 1994. The short-term rating of A1+ has been in place since June 1988.

I encourage you to read S&P's statement in full at the link below. There are several comments in S&P's release that I would like to highlight. S&P's ratings are based on Southwest Corporate's good franchise within the credit union industry and its solid financial profile which is highlighted by its good liquidity, moderate risk profile and adequate capital. Access to various sources of borrowings provides the high degree of liquidity necessary to support creditworthiness.

The primary reason that S&P revised its outlook from stable to negative is to reflect concern over Southwest Corporate's exposure to potential realized investment losses. It is important to note that S&P characterized Southwest Corporate's potential losses as manageable, and this opinion echoes the message we have communicated to our members over the past year.

Southwest Corporate continues to be confident that our asset quality remains high and our credit exposure is manageable. S&P agrees and confirmed this with its actions earlier today. Even with potential losses, S&P expects Southwest Corporate's capital to remain well above regulatory minimums.

Southwest Corporate's executive team will provide further comments at the upcoming webinar this Thursday, October 2, at 3 p.m. CT. Registration information for the webinar can be found at www.swcorp.org.

Please do not hesitate to contact me or the following individuals if you have any questions concerning market developments and the impact to Southwest Corporate.

Click here to read S&P's release.

John Cassidy, President, CEO
214.703.7800
cassidyj@swcorp.org

Bruce Fox, Executive Vice President, Chief Investment Officer
214.703.7850
foxb@swcorp.org