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Pentagon FCU Downgraded By Weiss

Kaight
  |     |   393 posts since 2011

Weiss Ratings has downgraded Pentagon FCU to a rating of "B". Looking at their chart, you notice a severe deficiency in Pentagon's liquidity, which is now well down into Weiss's "weak" range.

This downgrading could be only the "tip of the iceberg" as pandemic economic impact on our financial institutions asserts itself in the days ahead.

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blazer9
  |     |   67 posts since 2019
And $100K+ 10yr 5% CDs that will mature.
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111
  |     |   114 posts since 2019
Pentagon FCU may well be impacted by the pandemic effects, but it may also have special problems all its own. For those who follow da.com, for how many years now has PenFed offered well-below-market CDs rates, after providing pretty good rates years ago? As CDs have matured, folks have taken their funds elsewhere, so part of this PenFed brought on itself.
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Rickny
  |     |   14 posts since 2017
The only CD I have with Penfed is the 10 year paying 5%. This CD matures early 2021 and I will be closing it. Since their rates are no longer competitive I'm sure others will be leaving Penfed in early 2021.
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Choice
  |     |   109 posts since 2020
And if PenFed is still under “increased oversight” by regulators the opportunity to raise $s by increasing rates may be limited. On the other hand..a slow recovery to a better health rating can be met by increasing long term add on rates...keep an open for (hopefully) big change
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Kaight
  |     |   393 posts since 2011
I wrote the OP prior to release of this morning's blockbuster May employment report. I did not see those amazing numbers coming, and I'm very, very encouraged. I do not believe any sensible person, back in January, would have been concerned about major financial institutions turning turtle. The only wild card has been the pandemic. If we are starting already to emerge from the pandemic there will not have been sufficient time for viability of any well established financial institution to be threatened. Heck, I'm thinking even GTE might make it after all, which would be wonderful.  GTE has the advantage of operating in Florida, a state which has been among the leaders because of very smart, enlightened, even prescient state officials.

And remember, this morning's positive outcome materialized despite continuing lockdown in key, major, states like NY, CA, and IL. When all states begin pulling the wagon things should look even more promising, both for the banks and credit unions, and for America, too!
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Choice
  |     |   109 posts since 2020
In the last week California reported there were two days where the number of new coronavirus cases were records...exceeding all previous days! And the medical providers are on the sidelines...hopefully absentee ballots are available early!
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Ally6770
  |     |   2,884 posts since 2010
You do not think the amazing numbers had anything to do with PP when the companies had to hire back the workers and pay them their full wages to get the free money? The employees are no longer unemployed when they are collecting their full wages as the PP loans went out.
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Choice
  |     |   109 posts since 2020
As the PP loans “require”...good catch!
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Choice
  |     |   109 posts since 2020
Ally...little help if I may....you posted in April a note on NFCU allowing add on $ to existing (non-add on type) CDs (if I’m correct)...I had to call navy today and asked...the rep said existing Ira CDs can be added on at anytime but not for non-IRA CDs. Is that your recollection? A couple of years ago I seem to recall that may be true, ie they let me take $ out of existing CD (still had lesser $ remaining in it after transaction) and put in a new CD...but not now? Thanks
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Ally6770
  |     |   2,884 posts since 2010
I am a senior. It may be just for seniors. I do not know. But the first of every year for the first 3 months or so you can add to an existing IRA CD. I now have one that I can add to anytime for I think it is 30 months. I only know of this for IRA CD's. I have never had any CD's with Navy that I remember that have not been either a traditional or Roth IRA.
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Choice
  |     |   109 posts since 2020
Senior here, too.  Thank you sorry for my confusion...have a great week
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