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Article: Fitch Downgrades National Consumer Cooperative Bank's IDR to 'BBB'; Outlook Negative.
- Article from:
- Business Wire
- Article date:
- March 31, 2009
CopyrightCOPYRIGHT 2009 Business Wire. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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CHICAGO -- Fitch Ratings has downgraded the long-term Issuer Default Rating (IDR) of National Consumer Cooperative Bank (NCB) and NCB, FSB to 'BBB' from 'A-' following the company's announcement that it violated a financial covenant in its revolving bank credit facility due to a $1.7 million impairment related to securities held from a prior securitization.
NCB has amended the bank facility to get relief from the covenant default; the new terms include liens on all assets of NCB, relief on some covenants, overall reduction in amount of facility to $225 million from $350 million and further reduction on a quarterly basis till maturity on Dec. 15, 2010. The ratings ...