Fitch Upgrades & Affirms Constitution Corporate's Ratings
Fitch's rating action reflects Constitution's improved capital position, as well as the corporate maintaining its low risk profile and highly liquid balance sheet. Constitution's capital position has improved during the past several years. A supplemental Membership Capital Share Deposit offering coupled with a revised "cap" requirement raised additional capital in excess of $30 million for the corporate. Additionally, Fitch noted Constitution's improvement in its profitability despite the challenging interest rate environment. At year-end 2006, the total capital ratio was 7.14% and the retained earnings ratio was 3.00%, above NCUA's regulatory minimum requirements of 5.00% and 2.00%, respectively.