"Moody's confirms rating of Lehman fund; will withdraw rating" says a release issued yesterday. The ratings agency says, "Moody's Investors Service today confirmed the B/MR1+ fund rating of the Lehman Brothers US Dollar Liquidity Fund. This concludes a review of the rating, which Moody's initiated on September 22, 2008. The Fund was terminated on March 30, 2009. Shareholders of the Fund received 98% of their redemption proceeds on the date of termination." This appears to mean that the offshore Lehman fund, which suspended redemptions on Sept. 22, should now officially be classified as having "broken the buck". We're still seeking clarification, though, on whether the 2% loss is final. Moody's also wrapped up coverage of several Reserve funds, saying, "Moody's confirms ratings of Reserve funds; will withdraw ratings." It says, "Moody's Investors Service has today confirmed the fund ratings of three Reserve Management Company Inc. money market funds.... Reserve Treasury & Repo Fund: prior Rating - B, on review for further downgrade, Reserve USD International Treasury & Repo Fund: prior Rating - B/MR1+, on review for further downgrade, and Reserve USD International Treasury Fund Ltd.: prior Rating - B/MR1+, on review for further downgrade. Moody's will withdraw the ratings as the funds have been liquidated. The funds liquidated at a net asset value of $1.00 per share."
