Members United Merger to Boost Central CU Fund Ratings

CHICAGO – Fitch Ratings said yesterday it affirmed the long-term Issuer Default Rating of Members United Corporate FCU at ‘AA-‘, following its proposed acquisition of Central CU Fund, and expects to upgrade the smaller corporate’s investment ratings after the combination. The long-term IDR rating for the $260 million Massachusetts corporate of ‘A’ had been placed on rating watch positive and Fitch expects the ratings to be upgraded to be aligned with the $11 billion Memebrs United’s current rating after the merger. Fitch’s outlook reflects the fact the Central CU Fund, the nation’s oldest corporate, will become part of a much larger and more diverse institution. Fitch views the integration risk as modest given the size of the transaction and Members United’s track record of successful mergers, referring to last year’s combination of Mid-State Corporate FCU and Empire Corporate FCU creating Members United.