We are lowering our ratings on industry service provider Cuscal Ltd. (Cuscal) to 'A+/A-1' from 'AA-/A-1+'. At the same time we are revising the outlook on the ratings to negative from stable. Cuscal's increasingly concentrated exposure to individual credit unions, stemming from ongoing industry consolidation, has moderated our view of its credit profile. The rating action also reflects our view of Cuscal's important, but diminishing, role in the credit union industry in Australia, with larger credit unions meeting more of their financial services needs without Cuscal's support. Industry consolidation has also heightened the potentially negative business impact on Cuscal of larger credit unions meeting their financial services needs themselves or through other third parties. The negative outlook on the ratings
