NEW YORK – Fitch Ratings dealt U.S. Central FCU a strong blow yesterday, downgrading U.S. Central's Issuer Default Rating to "AA" from "AA+", blaming an expectation of additional investment losses "that are meaningful in relation to the company's capital base and earnings capacity."
Even more stunning was the downgrade of U.S. Central's Individual Rating from 'A' to 'D'. In Fitch's official release, Senior Director Ken Ritz explained that U.S. Central's investment losses threaten its capital position, and the aggregate corporate's funding and liquidity positions have eroded; however, the credit union's key industry role ensures a high probability of external support.
Fitch's IDR ratings consider that likelihood of support, such as recent NCUA initiatives to improve corporate positions; however, Individual Ratings do not.
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