S&P Assigns AA-/A-1+ Ratings to CUSCAL.MELBOURNE--(BUSINESS WIRE)--Standard & Poor's CreditWire 8/21/97--Standard & Poor's today assigned its double-'A'-minus long-term and 'A-1'-plus short-term ratings to Credit Union Services Corp. (Australia) Ltd. (CUSCAL CUSCAL Credit Union Services Corporation Australia Limited ). The ratings reflect CUSCAL's central role as a Special Service Provider (SSP (1) (Service Switching Point) The local exchange node in an SS7 telephone network. The SSP can be part of the voice switch or in a separate computer connected to it. ) within the Australian credit union industry, its ample balance sheet liquidity, low asset risk, an experienced and conservative management team, and strong capital ratios. As the largest of three SSPs for Australian credit unions, CUSCAL fulfills the role of central banker in the credit union industry, providing intermediation, management of prime liquidity funds, and other financial nonintermediation services to its member credit unions, which equal 83.6% of total credit union assets. SSPs are bodies owned and controlled by individual credit unions, incorporated and regulated under the Australian Financial Institutions Code July 1992. CUSCAL's legal status may alter if the recommendations of the Wallis inquiry relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc SSPs are adopted. However, its central and coordinating role within the credit union sector is expected to remain unchanged. CUSCAL's balance sheet is highly liquid, consisting of 85.9% securities and 3.05% cash. This liquidity is further supported by CUSCAL's intermediary Intermediary See: Financial intermediary intermediary See financial intermediary. role in the Emergency Liquidity Support Scheme and its membership requirements. Credit union liquidity regulations are quite strong, including a requirement for 3.5% of a credit union's total assets to be placed in a contingency fund and made available to credit unions should they require financial assistance. In normal circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or these funds are placed with an SSP, the bulk of which are deposited with CUSCAL in its role as banker for the scheme. In addition, CUSCAL requires members to deposit regulatory liquidity with them, thus providing a strong stable liquidity base. CUSCAL's asset portfolio reflects its strong liquidity, with 85.9% of total assets held in high quality short-term investments, 7.1% in loans, and 3.0% in short-term funds. Exposures within the securities portfolio are restricted to Australian Commonwealth, state and territory governments, licensed Australian banks, and major Australian corporates. The majority of liabilities and securities are maturity and interest rate matched, reducing mismatch mismatch 1. in blood transfusions and transplantation immunology, an incompatibility between potential donor and recipient. 2. one or more nucleotides in one of the double strands in a nucleic acid molecule without complementary nucleotides in the same position on the other and enhancing the liquidity of the portfolio. Capital on a risk-adjusted basis is strong, as reflected by the capital adequacy ratio Capital adequacy ratio (CAR), also called Capital to Risk (Weighted) Assets Ratio (CRAR)[], is a ratio of a bank's capital to its risk. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss. of 15.75%, of which the Tier 1 ratio was 6.17% at January 1997. OUTLOOK: Stable The outlook reflects Standard & Poor's expectation that CUSCAL's strategic role within the credit union industry will continue to grow under the guidance of its conservative and strong management team, Standard & Poor's said. --- CreditWire CONTACT: Ken Mclay, Melbourne, (61) 3-9250-4530 Ernest D. Napier, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , 212/208-1556 |
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