In a January 31 press release, Fitch affirmed Mid-Atlantic Corporate FCU's Long-term Issuer Default Rating (IDR) and Short-term IDR ratings at ‘A+‘/’F1+’, respectively. In addition, Fitch has upgraded Mid-Atlantic's Viability rating (VR) to 'bb-' from 'b+’.
As the press release points out, the high likelihood of government support accounted for the ratings notch uplift, as its support rating floor was above its standalone or Viability rating.
According to Fitch, Mid-Atlantic Corporate FCU "will continue to benefit from the government support provided to Corporate Credit Unions (CCUs) through the National Credit Union Association (NCUA). Fitch attributes an extremely high probability of support to CCUs from regulatory authorities, as reflected in its high support rating and support rating floor. This view is underpinned by the NCUA’s past actions and the U.S. Treasury’s additional assistance to credit unions by extending the operation of the Temporary Corporate Credit Union Stabilization Fund through 2021."
Read the press release.
Yes.
ReplyDeleteWe got a taxpayer bailout.
Debbie and Bill hate admitting it.
All depends on how you define 'taxpayer bailout'. NCUA, which is fully funded by credit unions arranged for a loan from the U.S.Treasury Dept. The loan is being repaid with interest by all credit unions. Kind of like most people and their house loan....that is not referred to as a 'bailout'.
ReplyDeleteNot sure CUNA CEO Bill would admit to a salary compensation plan (IRS 990 - 2011) totaling $1,129,651 PLUS Deferred Compensation totaling $172,500. Looks like we have the best paid CEO credit union lobbyist money can buy.
ReplyDelete