Fitch Affirms Mid-States Corp FCU; MCFCU on Watch Positive.Business Editors NEW YORK--(BUSINESS WIRE)--June 27, 2003 Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. all ratings of Mid-States Corporate Federal Credit Union (Mid-States) and removed it from Rating Watch Negative. The Rating Outlook for Mid-States is Stable. Fitch also revised Minnesota Corporate Federal Credit Union's (MCFCU MCFCU Medina County Federal Credit Union ) Rating Watch status to Positive from Evolving. The ratings of Mid-States and MCFCU were initially placed on Rating Watch Negative and Rating Watch Evolving, respectively, on October 31, 2002, following the announcement that Mid-States was going to merge with MCFCU (see release 'Fitch Places Mid-States On Rtg Watch Negative; MCFCU on Watch Evolving', Oct. 31, 2002). A complete list of ratings is provided at the end of this release. Following Mid-States' announcement that it was merging with MCFCU, Fitch placed the ratings of Mid-States on Rating Watch Negative and the ratings of MCFCU's on Rating Watch Evolving. The key reasons driving Fitch's actions at the time were concerns regarding the capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. of the combined entity and potential integration risks associated with the transaction. While the integration challenges remain, which will be closely monitored, Fitch has become more comfortable with the capitalization of the resultant This article is about the resultant of polynomials. For the result of adding two or more vectors, see Parallelogram rule. For the technique in organ building, see Resultant (organ). In mathematics, the resultant of two monic polynomials company given Mid-States plan to strengthen its capital cushion Cushion In the context of project financing, the extra amount of net cash flow remaining after expected debt service. cushion See call protection. by issuing up to $250 mln of Paid-In-Capital (PIC (1) (Programmable Interrupt Controller) An Intel 8259A chip that controls interrupts. Starting with the 286-based AT, there are two PICs in a PC, providing a total of 15 usable IRQs. ) over the next five years and the added caution management is employing in the execution of their plans for integrating MCFCU. Fitch's rating actions also reflects the strategic benefits the acquisition provides through expanded membership and consequential con·se·quen·tial adj. 1. Following as an effect, result, or conclusion; consequent. 2. Having important consequences; significant: dominance in the regional credit union market. Additionally, Fitch recognizes that the combined company will continue to have a low credit risk profile, a highly liquid balance sheet, and is expected to maintain its conservative investment posture. The following ratings are Affirmed and removed from Rating Watch Negative: Mid-States Corporate Federal Credit Union -- Long-term Issuer, 'AA-'; -- Individual, 'A/B'. The following ratings placed on Ratings Watch Positive: Minnesota Corporate Federal Credit Union -- Long-term Issuer, 'A+'; -- Individual, 'B'. The following ratings have been Affirmed Mid-States Corporate Federal Credit Union -- Short-term Issuer, 'F1+'; -- Support '4'. Minnesota Corporate Federal Credit Union -- Short-term Issuer, 'F1+'; -- Support '4'. |
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