SunCorp Retains It's A1+ Rating With Standard & Poor's Despite Securities Loss
ARVADA, Colo. - When you're a $2.8 billion dollar corporate like SunCorp Corporate CU, a $5 million loss in the securities portfolio isn't exactly earth shattering, but SunCorp President/CEO Eric Kenealy wants credit unions to know safety and soundness is always the corporate's first priority. Standard & Poor's recently announced that SunCorp's short-term debt rating of A1+ would not be affected by a roughly $5 million loss on available-for-sale securities in its audited year-end 2004 financials, resulting in reduced net income for the year of $12,005, compared to $4.8 million as of year-end 2002. "Although these losses are material and nearly equivalent to one year's earnings, SunCorp has taken numerous steps to strengthen its risk management and investment policies. SunCorp's ample liquidity and position as an intermediary in the highly regulated corporate credit union system supports its current rating. SunCorp continues to maintain a relatively low credit risk profile despite the recent losses. Moreover SunCorp remains one of the more conservative corporate credit unions followed by Standard & Poor's.." the rating agency wrote. Kenealy said the loss was the result of some asset-backed securities the corporate held being downgraded. Kenealy said Standard & Poor's decision to reaffirm the strong rating is a win for the corporate. "Year to date our net income is $2.3 million. Our safety and soundness is as strong as ever," said Kenealy.