PLANO, Texas — John Cassidy, president/CEO of Southwest Corporate, said he's confident there's a low probability his $14 billion institution will realize any meaningful investment losses, despite Fitch placing the corporate's ratings on negative watch this past Friday.
In a message to member credit unions, Cassidy stressed that Fitch is citing a possibility of losses, not a probability.
"We base our confidence on the rigorous investment credit analysis that our staff performs each month, including multiple loss scenario projections on a bond by bond basis, supplemented by ongoing external validations performed by third-party experts," he said.
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Cassidy also added that Fitch didn't change Southwest's ratings, but placed four ratings on watch: Long-Term Issuer Default Rating, Short-Term Issuer Default Rating, Short-Term Debt, and Individual A/B.
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