Fitch Affirms Mid-Atlantic Corporate FCU's IDR at 'A+' Following Merger Completion: Fitch Ratings has affirmed the 'A+' long-term Issuer Default Rating (IDR) and 'F1+' short-term IDR of Mid-Atlantic Corporate Federal Credit Union (Mid-Atlantic) following the close of the company's merger with VACORP Federal Credit Union (VACORP). The Rating Outlook is Stable. A complete list of ratings is provided at the end of this release.
Vergrößern Fitch Affirms Mid-Atlantic Corporate FCU's IDR at 'A+' Following Merger Completion | Bild: © ad-hoc-news

Fitch's affirmation of the ratings reflects that Mid-Atlantic's IDR is currently at its Support Rating floor. The 'b' Viability rating denotes weak future prospects. Material failure risk is present, but a limited margin of safety remains. The company's capacity for continued unsupported operation is vulnerable to deterioration in the business and economic environment. In Fitch's view the company continues to benefit from the government support provided to the industry. The ratings also reflect Mid-Atlantic's stronger capital relative to other corporate credit unions (CCUs).

Mid-Atlantic has met all the new regulatory capital requirements due to its successful capital raising initiatives. Total capital for the merged entity is about $176 million which includes $16 million in retained earnings. As of year end 2011, Mid-Atlantic's reported Tier 1 risk-weighted capital ratio of 19.18% and Total risk-weighted capital ratio of 22.24% far exceeds the new regulatory requirement of 4.00% and 8.00%, respectively. The leverage ratio of 5.38% also exceeded the required minimum of 4.00%. At year end 2011, Mid-Atlantic's retained earnings ratio of 0.47% slightly exceeds the 0.45% required minimum that CCUs must meet by 2013.

Mid-Atlantic is ranked the 4th largest company in the CCU network with total assets of approximately $4 billion and serves more than 850 members. Headquartered in Middletown, PA, Mid-Atlantic provides investment, lending and payment services including ACH, share draft and electronic processing in 44 states.

Fitch affirms the following ratings with a Stable Rating Outlook:

Mid-Atlantic Corporate Federal Credit Union

--Long-term IDR at 'A+';

--Short-term IDR at 'F1+';

--Viability at 'b';

--Support '1';

--Support Floor 'A+'.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--Global Financial Institutions Rating Criteria (Aug. 16, 2011);

--U.S. Corporate Credit Unions (June 21, 2010).

Applicable Criteria and Related Research:

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=649171

U.S. Corporate Credit Unions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=535609

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