Capital One 2014 Annual Report Download - page 129

upon the Banks’ ability to post collateral. Our FHLB membership is secured by our investment in FHLB stock of
$807 million and $774 million as of December 31, 2014 and 2013, respectively, which are determined in part based
on our outstanding advances. We also have access to the Federal Reserve Discount Window through which we had
borrowing capacity of $9.3 billion as of December 31, 2014. Although available, we do not view this borrowing
capacity as a primary source of liquidity and did not utilize it during 2014 or 2013.
Credit Ratings
Our credit ratings have a significant impact on our ability to access capital markets and our non-deposit borrowing
costs. Rating agencies base their ratings on numerous factors, including liquidity, capital adequacy, asset quality,
quality of earnings and the probability of systemic support. Significant changes in these factors could result in
different ratings. Such ratings help to support our cost effective unsecured funding as part of our overall financing
programs. Table 34 provides a summary of the credit ratings for the senior unsecured debt of Capital One Financial
Corporation, COBNA and CONA as of December 31, 2014 and 2013.
Table 34: Senior Unsecured Debt Credit Ratings
December 31, 2014 December 31, 2013
Capital One Capital One Capital One Capital One,
Financial Bank (USA), Capital One, Financial Bank (USA), Capital One
Corporation N.A. N.A. Corporation N.A. N.A.
Moody’s . . . . . . . . . . . . . . . . . Baa1 A3 A3 Baa1 A3 A3
S&P . . . . . . . . . . . . . . . . . . . . . BBB BBB+ BBB+ BBB BBB+ BBB+
Fitch . . . . . . . . . . . . . . . . . . . . A- A- A- A- A- A-
As of February 20, 2015, Moody’s, S&P and Fitch have us on a stable outlook.
Contractual Obligations
In the normal course of business, we enter into various contractual obligations that may require future cash
payments that affect our short- and long-term liquidity and capital resource needs. Our future cash outflows
primarily relate to deposits, borrowings and operating leases. Table 35 summarizes, by remaining contractual
maturity, our significant contractual cash obligations based on the undiscounted future cash payments as of
December 31, 2014. The actual timing and amounts of future cash payments may differ from the amounts presented
below due to a number of factors, such as discretionary debt repurchases. Table 35 excludes certain obligations
where the obligation is short-term or subject to valuation based on market factors, such as trade payables and
trading liabilities. The table also excludes the representation and warranty reserve of $731 million as of
December 31, 2014 and obligations for pension and post-retirement benefit plans, which are discussed in more
detail in “Note 16—Employee Benefit Plans.”
107 Capital One Financial Corporation (COF)