NEW YORK – Ratings agency Standard & Poor's took several ratings actions against corporates late last week, downgrading seven of the 10 corporates it rates.
Corporate Central CU, Corporate One FCU, Constitution Corporate FCU, Members United Corporate FCU, Southeast Corporate FCU, Southwest Corporate FCU and Western Corporate FCU were all downgraded by S&P, from A-1+ to A-1.
Central Corporate CU and Eastern Corporate FCU had their A-1+ ratings affirmed; S&P Primary Credit Analyst Robert Hoban, Jr. wrote the agency's official report that the two corporates' have "stuck closest to the original low-risk corporate model", and as a result, have been least affected by the credit crisis.
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Downgraded corporates received the blemish primarily thanks to S&P's "reevaluation of the industry". While Hoban said that the corporate credit union industry remains healthy overall, "the ongoing credit crisis and the impact of longer-term structural changes to the industry on the corporates' franchises during the past decade have incrementally weakened corporates' creditworthiness to varying degrees."
S&P has not yet completed its review of U.S. Central FCU; it is expected to be released in a few weeks.
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