As a result of Standard & Poor’s recent downgrade of the long-term debt rating of the U.S. government and federal agencies from AAA to AA+, NCUA recently issued a memo to federally insured credit unions that describes how this recent change may affect NCUA, credit unions, and their members.
The memo discusses the following potential points of impact:
- Credit Union Investments: NCUA assigns no change to government risk weights.
- NCUA Guaranteed Notes: NCUA advises there will be no impact on sales proceeds.
- Corporate Credit Union Liquidity Guarantee Program: NCUA determined there would be no increase in costs.
- Money Market Funds: NCUA confirmed there will be a limited impact on money market funds.
- Consumer Confidence: NCUA addressed concern for the potential impact on share and loan demand.
Please access the NCUA memo in its entirety by clicking here.