The credit profile of Credit Union Services Corp. (Australia) Ltd. (CUSCAL) is supported by 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 capitalization can be supplemented in line with growth in its business activities. Its capital ratios are considered to be good, while the absolute size of the capital base is modest. Efforts toward restructuring the operations are expected to underpin future earnings. Earnings historically have been poor, although this is not a key rating sensitivity. 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
