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Kroll Bond Rating Agency Releases Credit Union Rating Methodology

Kroll Bond Rating Agency’s Subscription Rating Service (SRS) published a new rating methodology for U.S. Credit Unions (non-corporate).

A central feature of the new rating methodology is a revised statistical scoring system that was designed to improve the transparency of KBRA’s ratings and enhance ratings accuracy. The new scoring system was developed following a thorough analysis of credit union failures over an 11-year period with a view towards identifying those credit union characteristics most predictive of failure. The new system generates a score for each credit union. This score is then converted into a rating which is analyzed by KBRA and published on the SRS website. The new methodology, Credit Union Rating Methodology — A New Financial Strength Model, is available at www.srs.krollbondratings.com

Source:  MarketWatch

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