U.S. Central Federal Credit Union Downgraded
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U.S. Central Federal Credit Union, the non-profit company that invests on behalf of 8,400 local lenders, lost its AAA rating from Standard & Poor’s after reporting a $760 million drop in the value of subprime-infected securities. U.S. Central had its rating cut one level to AA+, New York-based S&P said yesterday in a statement. The ratings service may downgrade U.S. Central again if the investments deteriorate further, analyst Robert Hoban said in the statement.
“With the housing market weakening to levels not seen since the early 1990s down-cycle, we expect U.S. Central’s large portfolio of mortgage-related securities to further decline in value,” Mr. Hoban said.
