Asset Quality Score
This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid loans.
A credit union with a large number of these types of assets could eventually have to use capital to absorb losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, reducing earnings and increasing the risk of a future failure.
UNIVERSAL CITY STUDIOS scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating the national average of 38.15.
The credit union's ratio of problem assets was 1.00 percent in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.