The ratings on Credit Union Services Corp. (Australia) Ltd. (CUSCAL) reflect its principal position in Australia's credit union sector, very good asset quality, and strong balance-sheet liquidity. By virtue of CUSCAL's mutual ownership structure, its capitalisation is supplemented in line with growth in business activities. Its capital ratios are considered good, although the absolute size of the capital base is modest. Efforts toward restructuring the operations are expected to underpin operational efficiency and future earnings. Underlying earnings have historically been poor, but are expected to benefit from recent structural changes. CUSCAL has a sound business profile and exerts significant influence in the Australian credit union sector. The main challenges facing CUSCAL are to maintain its strong support from the credit
