Asset Quality Score
Bankrate uses this test to estimate the impact of problem assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
Having large numbers of these types of assets means a credit union could eventually have to use capital to cover losses, decreasing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, decreasing earnings and increasing the risk of a future failure.
MCGRAW HILL scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.15.
MCGRAW HILL's ratio of problem assets was 5.00 percent in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.