LENEXA, Kan. - U.S. Central Federal Credit Union announced late Wednesday it has completed the conversion of $450 million in Membership Capital Shares (MCS) to Paid-In Capital (PIC II) shares.

All 26 corporate credit unions are members of the $36 billion U.S. Central, and all participated in the conversion and voted unanimously to approve it, according to an official release.

PIC II Shares meet the GAAP definition of equity, and also qualify as core capital for NCUA regulatory purposes. While the move reinforces U.S. Central's capital position, the cooperative's debt ratings will be the conversion's primary benefactor. Currently, ratings agencies recognize PIC, but not MCS, as core equity capital; as such, the conversion should preserve U.S. Central's ratings. Just last week, Moody's Ratings Service downgraded U.S. Central's long-term debt ratings down a notch, from Aa1 to A1.