LENEXA, Kan. — Fitch Ratings didn't downgrade U.S. Central Credit Union's ratings yesterday, despite the corporate's release of its final, externally audited 2007 financials, which show a $51 million net loss for the year. U.S. Central's IDR 'AA+' and Senior debt 'AA+' still remain on ratings watch negative.
The loss is a reversal from previously reported profits of $7 million, and will also result in changes to first-half 2008 numbers.
What happened? Unrealized losses were deemed 'other-than-temporary impairments' (OTTI), forcing the corporate to recognize additional losses of almost $87 million in its securities portfolio. Non-agency residential mortgage-backed securities are to blame, largely from securities in which complete payment of principal was viewed as uncertain.
Continue Reading for Free
Register and gain access to:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts.
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders.
- Educational webcasts, white papers, and ebooks from industry thought leaders.
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com.
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.