Corporate One Receives Short-Term Credit Rating of A-1
COLUMBUS, Ohio – After conducting a review of those Corporate credit unions that receive ratings from Standard and Poor’s (S&P) (U.S. Central FCU was not included is this review), the ratings agency today released its latest report. Not unexpectedly, S&P took several rating actions. Corporate One received a short-term debt rating of A-1, a change from A-1+.
A short-term commercial paper obligation rated A-1 is rated in the highest category by Standard & Poor's, indicating the obligor's capacity to meet its financial commitment on the obligation is strong. Within this category, S&P will designate certain obligations with a plus sign (+). This indicates that the obligor's capacity to meet its financial commitment on these obligations is extremely strong.
“Corporate One’s board and management are pleased, and not surprised at all by the results of the review by S&P,” said Lee Butke. “Virtually all financial institutions that have exposure to asset-backed securities are being effected by the current economic crisis, and these action by the ratings agencies are to be expected. The change to our rating will not affect our ability to issue commercial paper or our ability serve our more than 800 members. The fact that Corporate One has continued to maintain a rating in the highest category given by S&P is a testament to the fact that we continue to be a strong financial institution.”
In the review, S&P recognizes the continued healthy performance of the corporates, citing low risk profiles and solid liquidity positions. In regard to Corporate One specifically, the review cites our sound franchise, strong financial profile (supported by strong liquidity), very limited risk and adequate risk-adjusted capital. The review also notes Corporate One’s limited investment risk and limited exposure to securities write-downs.
A full copy of the Standard and Poor’s Review can be read on our website at www.corporateone.coop.
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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