SAN DIMAS, Calif. — Western Corporate and Members United Corporate reacted to news that Standard & Poor's has placed them on CreditWatch negative by focusing on the ratings agency's reassuring words about their financial health and liquidity, and reminders that their stellar ratings weren't downgraded. Both WesCorp and Members United maintained their A-1+ ratings, the highest S&P issues on short-term debt.

Victor Vrigian, chief marketing officer at Members United, said “During this especially turbulent time, it is gratifying that Members United's ratings were not downgraded–but rather placed on CreditWatch Negative pending further review.”

WesCorp SVP and CFO Jim Hayes suggested his corporate's ratings may improve once the SEC and FASB propose additional interpretative guidance on fair value measurement under U.S. GAAP later this week.

“We anticipate any new clarifications will have a positive impact on S&P's independent review of our portfolio,” Hayes said.

S&P's release was a bi-polar message, both praising corporates and the overall health of the credit union industry, and warning of “the slow erosion of [corporates'] historically rock-solid franchises.”

Increased competition and compliance costs have reduced corporate profitability, S&P said, and the “historically close bond between members and their corporate is not what it once was.” As a result, corporates could be less likely to rely upon their members support if needed, the release concluded.