A number of ratings actions have been taken over the past several days, including Moody's awarding its Aaa ratings to PIMCO Treasury and PIMCO Government Money Market Fund, Moody's assigning Aaa/MR1 ratings to BNP Paribas InstiCash USD and CHF, Moody's withdrawing ratings on two RidgeWorth bond funds, and S&P changing its principal stability fund ratings on the New MexiGROW Local Government Investment Pool (LGIP).
Moody's Vice President Martin Duffy says of the PIMCO ratings, "The Aaa ratings assigned to both portfolios reflect our favorable opinion of the credit quality of the fund's investments, PIMCO's approach to managing liquidity, and the weighted average maturity constraints of 60 days or less put in place by the adviser to limit the funds' exposure to interest rate risk. The ratings are further supported by our view that the fund advisor's operational procedures, systems and management controls are sound."
The press release explains, "Money Market Funds rated Aaa are judged to be of an investment quality similar to Aaa-rated fixed income obligations, that is, they are judged to be of the best quality.... The PIMCO US Government Money Market Fund was launched on January 27, 2008, but the PIMCO Treasury Money Market Fund fund has not yet been formally launched."
Moody's also assigned Aaa/MR1 ratings to the $2.5 billion "offshore" BNP Paribas InstiCash USD and the CHF (Swiss franc) 240 million BNP Paribas InstiCash CHF, two Luxembourg variable net asset value money market funds. The funds of BNP Paribas InstiCash are domiciled in Luxembourg and qualify as a Societe d'Investissement a Capital Variable, or SICAV. The umbrella fund has Euro, USD, GBP and CHF sub-funds.
Standard & Poor's Ratings Services said Friday "that it lowered its principal stability fund rating on the New MexiGROW Local Government Investment Pool (LGIP) to 'Dm' from 'AAAm' and then raised the rating back to 'AAAm'. These rating actions are based on the New Mexico State Treasurer's Office's recent decision to reallocate on a pro rata basis the LGIP's initial exposure to the Reserve Primary Fund. S&P also rated Neuberger Berman Government Money Fund 'AAAm' and Moody's withdrew ratings on two RidgeWorth ultra-short bond funds.
