NEW YORK – Fitch Ratings took negative action on all eight of the retail corporates it rates, and sent the institutions' Individual Ratings, which assess an institution without incorporating any external support, plummeting.
At the bottom of the list is Constitution Corporate FCU, which saw its Individual Rating tumble from 'B' to 'D/E'. Members United Corporate FCU and Southwest Corporate FCU both had their Individual Ratings lowered from 'B' to 'C/D'. None of the eight scored higher than 'B/C'.
"The varying degree of notching between the Individual ratings of each company largely reflects the risk of loss from each respective company's investment portfolio and its USC PIC exposure relative to its capital position," wrote Ken Ritz in the official release.
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Fitch's Individual Ratings scooped U.S. Central's loss announcement when it downgraded its Individual Rating from 'A' to 'D' shortly before the corporate's $1.2 billion OTTI announcement.
Ritz wrote in some cases, Fitch expects significant realized losses, particular for corporates holding asset backed securities with exposure to home equity, sub-prime and Alt-A products.
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