CHICAGO (3/26/09)--The issuer default ratings (IDRs) of eight corporate credit unions were reaffirmed with a stable outlook by Fitch Ratings, which also lowered individual ratings of each corporate. Fitch said it based the affirmations on the National Credit Union Administration's (NCUA) "continued demonstrated support for these entities." In February, Fitch raised the support ratings of the corporates to "1" and established a support rating floor of "A+" to emphasize the importance of government support in assessing the probability of default for the entities. Fitch added that the adjusted rating action on each corporate's individual ratings follows NCUA's announcement that it was placing U.S. Central FCU into conservatorship. "The conservatorship will impair the value of the capital share investment in USC of each corporate credit union rated by Fitch, resulting in a significant negative impact on each institution's capital," Fitch said. The corporates are:
* Central Corporate CU (CenCorp), Southfield, Mich.; * Constitution Corporate FCU, Wallingford, Conn.; * Eastern Corporate (EasCorp) FCU, Auburn, Mass.; * First Corporate (FirstCorp) CU, Phoenix ; * Mid-Atlantic Corporate FCU, Middletown, Pa.; * Members United Corporate FCU, Eagan, Minn.; * Southeast Corporate FCU, Tallahassee, Fla.; and * Southwest Corporate FCU, Plano, Texas.
To view the ratings, use the link.