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A.M. Best Downgrades Ratings of Greek Catholic Union of the USA.

OLDWICK, N.J. -- A.M. Best Co. has downgraded the financial strength rating to C- (Weak) from B (Fair) and issuer credit ratings to "cc" from "bb" of Greek Catholic Union of the USA The Greek Catholic Union of the USA is the oldest continuous fraternal benefit society for Rusyn immigrants and their descendants in the United States.

Founded as the Greek Catholic Union of Rusyn Brotherhoods in the USA (GCU) in Wilkes-Barre, Pennsylvania on 14 February
 (GCU GCU Grand Canyon University (Phoenix, Arizona, USA)
GCU Glasgow Caledonian University
GCU Glasgow Caledonian University (UK)
GCU Government College University (Lahore, Pakistan) 
) (Beaver beaver, either of two large aquatic rodents, Castor fiber and Castor canadensis, known for their engineering feats. They were once widespread in N and central Eurasia except E Siberia, and in North America from the arctic tree line to the S United , PA). The outlook for both ratings is negative. GCU is a fraternal fraternal /fra·ter·nal/ (frah-ter´n'l)
1. of or pertaining to brothers.

2. of twins; derived from two oocytes.

1. Of or relating to brothers.
 benefit society.

These rating actions reflect the 75% decline in GCU's unassigned funds to $6.4 million in 2008 from $26.6 million in 2007. This decline primarily was due to investment losses, both realized and unrealized, inherent under the current volatile investment markets. As a result, GCU's risk-adjusted capitalization has weakened considerably, and A.M. Best notes that regulatory capital ratios are very low.

The rating actions also reflect GCU's continuing high position in commercial mortgage-backed securities Commercial mortgage-backed securities (CMBS) are a type of bond commonly issued in American security markets. They are a type of Mortgage-backed security which are backed by mortgages on commercial rather than residential real estate. , below investment grade bonds and preferred and common stocks relative to its modest surplus position. In addition, A.M. Best notes that GCU's exposure to fixed annuities Fixed annuities

Contracts in which an insurance company or issuing financial institution pays a fixed dollar amount of money per period.
 has increased in each of the past five years and represents more than nine-tenths of its total reserves, with a significant portion of its fixed annuities without surrender protection.

Partially offsetting these factors are GCU's long established presence as a fraternal benefit society and its generally positive operating results over the past five-year period. GCU's management is taking a number of steps to strengthen those areas, which have hampered surplus growth, in spite of generally favorable operating results.

For Best's Ratings Best's rating

A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders.
, an overview of the rating process and rating methodologies, please visit

The principal methodologies used in determining these ratings, including any additional methodologies and factors, which may have been considered, can be found at

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit
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Publication:Business Wire
Date:Mar 11, 2009
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