Fitch Ratings has revised Constitution State Corporate
Credit Union's (Constitution) Rating Outlook to Positive from Stable.
At the same time, Fitch has affirmed all other ratings for
Constitution and a complete list of ratings follows at the end of this
release.
The revision of the Rating Outlook is largely due to the improvement in the company's capital position, particularly total capital, as well as the prospect of further enhancement through a planned supplemental capital offering. In July 2004, Constitution revised its Membership Capital Share (MCSD) requirement cap to $2 million from $1 million. The revised MCSD requirement increased its MCSD balances by $8.6 million since June 30, 2004 and improved its total capital ratio to 5.28% at March 31, 2005. Additionally, Constitution plans to raise an additional $30 million in MCSDs through a supplemental offering to be completed by the end of June. A fully subscribed offering is expected to increase Constitution's total capital ratio to the 7.00% range.
Following the completion of the supplemental offering, Fitch will re-evaluate Constitution to determine if the new capital structure is commensurate with its risk profile to warrant an upgrade of the ratings.
Ratings affirmed by Fitch are as follows:
Constitution State Corporate Credit Union
-- Long-term issuer 'A+';
-- Short-term debt 'F1+';
-- Individual 'B';
-- Support '4'.
The revision of the Rating Outlook is largely due to the improvement in the company's capital position, particularly total capital, as well as the prospect of further enhancement through a planned supplemental capital offering. In July 2004, Constitution revised its Membership Capital Share (MCSD) requirement cap to $2 million from $1 million. The revised MCSD requirement increased its MCSD balances by $8.6 million since June 30, 2004 and improved its total capital ratio to 5.28% at March 31, 2005. Additionally, Constitution plans to raise an additional $30 million in MCSDs through a supplemental offering to be completed by the end of June. A fully subscribed offering is expected to increase Constitution's total capital ratio to the 7.00% range.
Following the completion of the supplemental offering, Fitch will re-evaluate Constitution to determine if the new capital structure is commensurate with its risk profile to warrant an upgrade of the ratings.
Ratings affirmed by Fitch are as follows:
Constitution State Corporate Credit Union
-- Long-term issuer 'A+';
-- Short-term debt 'F1+';
-- Individual 'B';
-- Support '4'.
© 2005 Business Wire
