Research Update: New Zealand-Based Manchester Unity Credit Union Ratings Affirmed On Criteria Revision; Outlook Stable Dec 11
- Language: English
- Published: December 2011
Very strong risk-adjusted capital ratio, offset by limited financial flexibility and very small absolute capital Good credit-loss history Good track record of support from small member base Gradually diminishing business base Very small capital base, limiting MUCU's ability to absorb unexpected losses Key-person risk and limited governance capability Our ratings on MUCU reflect the anchor stand-alone credit profile (SACP) for a financial institution operating only in New Zealand, plus MUCU's "very weak" business position, "very strong" capital and earnings, "weak" risk position, "below average" funding and "adequate" liquidity. Our bank criteria use the BICRA economic risk and industry risk scores to determine a bank's anchor SACP, the starting point in assigning an ICR. The anchor SACP for a bank operating...
Companies mentioned in this report are: Manchester Unity Credit Union
Action: Various Rating Actions
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Research Type: Full Analysis