The ratings on Cuscal Ltd. reflect the company's principal position as a service provider to the Australian credit union sector, strong asset quality, and its strong liquidity profile. Moderating these factors are Cuscal's history of stable, repeatable, but modest earnings, and the low absolute size of its capital base, which limits the company's ability at the current rating level to deal with a major negative operational or other negative risk event. Cuscal operates primarily as an industry service provider offering a reasonably broad range of financial services mainly to member credit unions, in addition to acting as central banker to its members. Further supporting the ratings are Cuscal's sound business profile, seen in the company's affiliation with about 85% of
