TALLAHASSEE, Fla. – Fitch Ratings has affirmed the long-term Issuer Default Rating (IDR) and short-term IDR for Southeast Corporate Federal Credit Union at “AA-” and “F1+”, respectively. The Rating Outlook for Southeast Corporate is “Stable.”
The affirmation of Southeast's ratings reflects the company's low risk profile, highly liquid balance sheet, and adequate earnings performance, Fitch said. Southeast continues to fulfill its mission as a corporate credit union, maintaining a conservative investment philosophy and robust risk management practices, Fitch added.
Further, Fitch recognized the significance of Southeast's franchise within the corporate credit union network. Southeast ranks as the fourth-largest corporate credit union with total assets of $4.2 billion and serves 466 credit union members.
Fitch said Southeast’s investment portfolio is of very high quality, but it does contain some limited subprime exposure and bonds rated in the “A” range which modestly heightens the credit risk in the portfolio. Nonetheless, Fitch said, the slightly heightened credit risk is still considered acceptable for the company's current ratings and these exposures receive a high degree of surveillance from management.
Capital levels remain lower than most peers, but exceed regulatory minimums and are considered sufficient to support its overall risk profile. Southeast's recent adjustment to its requirements for the contribution of Membership Capital Share Deposits (MCSD) should improve total capital.
