CHICAGO – Fitch Rating on Friday said it has placed its rating for Members United Corporate FCU on its Rating Watch Negative based on growing concerns over losses on its large holdings of mortgage backed securities.

The Rating Watch Negative reflects Fitch’s concern of an increasing possibility that the corporate could realize meaningful losses on its investments. “They have a sizable accumulated unrealized loss,” said Doris Hoffmann, an analyst for the Wall Street rating agency. “Really, this is central to our concerns.”

Subscribe Now

Authoritative analysis and perspective for every segment of the credit union industry

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.