Wall Street Sees Upgrade of Constitution Corporate FCU as a Capital Idea

WALL STREET – Fitch Ratings said yesterday it upgraded the long-term Default Rating of Constitution Corporate FCU to ‘AA-‘ from ‘A+’ as a result of the $2 billion corporate’s capital-raising campaign, and is low risk profile. The Connecticut corporate has improved its capital position in the past few years, with the raising of $31 million in 2005, including a $23 million membership capital share deposit offering. In addition, said Fitch, Constitution Corporate has improved its profitability, despite the challenging interest rate environment. At year-end 2006, total capital was 7.14% and retained earnings was 3%, above NCUA’s 5% and 2% minimum requirements. Although the ratios are below the average for corporate credit unions, Fitch views Constitution’s capital as in line with its peers.