Standard & Poor's Corp. downgraded four corporate credit unions that had to write down their stakes in the failed U.S. Central Federal Credit Union and withdrew its credit ratings for two others.
The National Credit Union Administration seized U.S. Central last month. The resulting writedowns "will severely impair the corporates' capitalization," S&P said Monday.
S&P said it withdrew its ratings for EasCorp Federal Credit Union and CenCorp Credit Union at the institutions' request. These two credit unions will take the biggest capital hits from the U.S. Central writedowns, the rating agency said. "According to our calculations, each is likely to have negative regulatory core capital," it said.
The downgraded credit unions are: Southwest Corporate Federal Credit Union, Southeast Corporate Federal Credit Union, Constitution Corporate Federal Credit Union, and SunCorp Federal Credit Union.
