SunTrust's STI Classic Funds Obtains No-Action Letter on Cheyne SIV. Fund news website informs us that Trusco Capital Management, advisor to the STI Classic money funds, has obtained a "no-action" letter from the SEC to purchase a letter of credit from parent company SunTrust Bank to protect its minimal holdings (0.8%) of Cheyne medium-term notes. STI joins Legg Mason and SEI in a growing list of fund firms that have obtained protections requested by S&P and Moody's to maintain AAA fund ratings. S&P has previously said that about a "dozen" funds that it rates hold Cheyne debt, which had been rated A-1+ (the highest short-term rating) but is currently one of the few money market securities in the recent turmoil to actually default.

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