SAN DIMAS, Calif. — Moody's Ratings Service announced yesterday that it has downgraded Western Corporate Federal Credit Union's long-term rating from Aa3 to A2, and placed both that rating and WesCorp's Prime-1 short-term rating on review.
Moody's credited the downgrade to the potential for realized losses on WesCorp's balance sheet as a result of the lingering dislocation in asset-backed security market.
"There is no immunity from the current market dislocation," WesCorp Senior Vice President and Chief Financial Officer Jim Hayes said. "[The] action further illustrates the continuing devaluation that all financial institutions are experiencing in their portfolios."
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Hayes noted that every security in WesCorp's portfolio was government-backed or rated AAA or AA at the time of purchase, and the corporate has only purchased AAA-rated securities since 2006.
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