Fitch Affirms Mid-Atlantic Corporate FCU's IDR at 'A+'; Upgrades Viability Rating to 'b+'

CHICAGO--()--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). Fitch has upgraded Mid-Atlantic's Viability rating (VR) to 'b+' from 'b'. The Rating Outlook is Stable. A complete list of ratings is provided at the end of this release.

RATING RATIONALE

Fitch's affirmation of the IDR and Stable Outlook reflects that Mid-Atlantic's IDR is currently at its Support Rating floor. In Fitch's view, the company continues to benefit from the government support provided to the industry.

The VR was upgraded to 'b+' from 'b' reflecting the company's conservative balance sheet, low risk profile and improving capital. The company's modest earnings are due to its conservative strategy and low risk investment portfolio.

The VR of 'b+' denotes that the company's capacity for continued unsupported operation is vulnerable to deterioration in the business and economic environment. However, the company's stronger capital and low risk profile conveys that a moderate degree of fundamental financial strength exists, which would have to be eroded before the company would have to rely on extraordinary support to avoid default.

SENSITIVITY/RATING DRIVERS

The IDR is more sensitive to Support that the National Credit Union Association (NCUA) is providing the credit union industry and changes in economic conditions. In the event that Mid-Atlantic loses the support that NCUA provides the credit union system, the Support Rating, Support Rating Floor and IDRs would be downgraded. Continued improvement in capital and other fundamentals, while maintaining a conservative investment strategy could result in upgrade of Mid-Atlantic's VR.

Fitch has taken the following rating actions:

Mid-Atlantic Corporate Federal Credit Union
--Long-term IDR affirmed at 'A+';
--Short-term IDR affirmed at 'F1+',
--Support affirmed at '1';
--Support Floor affirmed at 'A+';
--Viability upgraded to 'b+' from 'b'.

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. 15, 2012).

Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=686181

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Contacts

Fitch Ratings
Primary Analyst:
Rosalie Chua, +1-312-368-2051
Associate Director
Fitch, Inc.
70 West Madison
Chicago, IL 60602
or
Secondary Analyst:
Ed Thompson, +1-212-908-0364
Senior Director
or
Committee Chairperson:
Christopher Wolfe, +1-212-908-0771
Managing Director
or
Media Relations:
Brian Bertsch, +1-212-908-0549
brian.bertsch@fitchratings.com

Sharing

Contacts

Fitch Ratings
Primary Analyst:
Rosalie Chua, +1-312-368-2051
Associate Director
Fitch, Inc.
70 West Madison
Chicago, IL 60602
or
Secondary Analyst:
Ed Thompson, +1-212-908-0364
Senior Director
or
Committee Chairperson:
Christopher Wolfe, +1-212-908-0771
Managing Director
or
Media Relations:
Brian Bertsch, +1-212-908-0549
brian.bertsch@fitchratings.com