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Fitch withdraws ratings of three more corporates
CHICAGO (11/2/10)--Ratings organization Fitch says it has affirmed and then withdrawn its ratings for three corporate credit unions under conservatorship. The corporates--Constitution Corporate FCU, Members United Corporate FCU, and Southwest Corporate FCU--were placed into conservatorship by the National Credit Union Administration (NCUA) Sept. 24. The NCUA's plans for legacy assets calls for liquidating the charters of the three corporates and re-establishing bridge corporate charters, which means Fitch no longer considers the ratings of the three corporates as relevant to the agency's coverage. NCUA plans to employ a "Good Bank/Bad Bank" model and transfer the operations and good assets and member share deposits into bridge corporates for Members United and Southwest, Fitch said. The conserved charters, which will retain the legacy assets, will become inactive and be placed into an asset management estate for liquidation, said the ratings company. NCUA is seeking a purchaser to assume operations, good assets and member share deposits for Constitution Corporate, while its conserved charter will retain the impaired assets. Since Constitution would become inactive under a purchase and assumption transaction, Fitch affirmed and withdrew its rating. In October, Fitch affirmed and withdrew ratings for U.S. Central Corporate FCU (now U.S. Central Bridge Corporate FCU) for similar reasons.
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