Credit Union Baywide receives good news

Credit Union Baywide, which has 16 branches throughout the central and lower North Island, has had its ratings lifted from BB from BB- by Standard and Poors.

The ratings agency says that CU Baywide's asset quality has improved in recent years, as indicated by reduced credit losses, driven by a cyclically benign economic environment and structural changes to its loan portfolio.

In the six months to Decembere 31, 2015, non-performing loans declined nominally, from $5 million to $3.1 million (2.31% to 1.39% as a proportion of customer loans). In addition, the credit union's net charge-offs declined as a proportion of the agency's expected through-the-cycle losses to 43% from 53%.

In contrast, CU Baywide's non-performing loans were 2.33% of gross loans with net charge-offs at 124% of the agency's expected through-the-cycle loss rate as of June 30, 2014.