A new Moody's liquidity risk assessment on Western Corporate Federal Credit Union reveals that despite being placed into conservatorship March 20, WesCorp has not experienced a run on shares.
Member shares, the primary source of balance sheet funding for WesCorp, totaled $22 billion as of May 31, up 38% so far this year, which is "consistent with typical seasonal patterns," Moody's said. The report was posted Friday on the firm's Web site (www.moodys.com).
Moody's acknowledged the NCUA's corporate share guarantee program, saying the program, along with other NCUA actions, has "helped stabilize share flows throughout the credit union system."
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WesCorp still maintains a $40 million line of credit with U.S. Central, and had no outstanding balance as of June 30. Moody's said another key source of liquidity is WesCorp's access to the Federal Home Loan Bank of San Francisco; WesCorp had outstanding borrowings of $350 million, with $2 billion of additional capacity available as of June 30.
WesCorp also has a medium-term note program ($245 million outstanding) and is eligible to issue up to $4.2 billion of unsecured debt under the Temporary Corporate Credit Union Liquidity Guarantee Program.
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