Liquidity risk assessment by Moody’s reaffirms Corporate One’s short-term credit rating with its highest, P-1
COLUMBUS, Ohio – After conducting a liquidity risk assessment, Moody’s Investor Services reaffirmed Corporate One Federal Credit Union’s short-term rating as P-1, its highest rating designation, reflecting confidence in Corporate One’s liquidity position.
“Corporate One’s board of directors and management team are extremely pleased to receive Moody’s vote of confidence in the reaffirmation of our creditworthiness and liquidity standing,” commented Lee Butke, Corporate One president and CEO. “Third party validation of our solid financial position serves as an important reinforcement that during these turbulent economic times Corporate One continues to be a sound, trusted steward of its members’ funds.”
The report recognizes that “Corporate One looks to maintain a liquid balance sheet that places member capital preservation first and foremost. The demand nature of Corporate One’s liability structure requires the institution to maintain a high level of balance sheet liquidity to meet member demands. About 98% of Corporate One’s assets at the end of the quarter were comprised of cash and high quality securities and investments.”
While the report acknowledges the risk inherent in Corporate One’s private label MBS holdings during such a volatile market, Moody’s believes that “Corporate One has the liquidity capacity to hold the securities and not have to realize the imbedded market losses.” Further, Moody’s recognizes that Corporate One has a sound track record when employing diversification strategies needed to limit any possible exposure to underlying collateral and issuers.
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About Corporate One
Corporate One Federal Credit Union is a leading wholesale financial services provider to more than 800 of America’s credit unions. With more than $5.2 billion in assets under management, Corporate One offers correspondent services including ATM/debit cards, share draft imaging, and depository and electronic payment services to credit unions in Ohio, Indiana, Kentucky, and West Virginia, as well as investment solutions to credit unions across the United States. Corporate One also developed and manages Alliance One, one of the nation’s largest non-network-specific ATM selective-surcharging groups. For more information, visit www.corporateone.coop.
Contact: Paul Hixon, 800/282-2560 ext. 9313