"Money-Fund Ratings Reviewed"
WSJ.com writes "Money-Fund Ratings Reviewed", which says, "Ratings agencies are moving to strengthen their criteria for rating money-market funds, and one says some funds may face downgrades if their credit and liquidity risks aren't addressed with regulatory action or through other measures before the various forms of government support are removed. Fitch Ratings is considering whether prime money-market funds -- those that may invest in securities, including commercial paper issued by corporations, as well as government securities -- will be able to achieve triple-A ratings over the longer term, absent fundamental changes. Removal of the various forms of government support could negatively affect ratings if the credit and liquidity issues aren't addressed, Fitch said." (WSJ didn't source any Fitch document or release.) The piece adds, "Standard & Poor's isn't concerned that money-market funds' ratings will be jeopardized as government support programs end, said Peter Rizzo, senior director in S&P's fund rating group. Many money-market funds have weaned themselves off the guaranty program, many funds are now operating in a more risk-averse mode, and the SEC's proposals would further decrease risks, he said." In ratings news, S&P rated Northern Trust Euro, Sterling, and Dollar Global Cash Funds 'AAAm' and rated Six Goldman Sachs LIBOR Tracker Funds 'AAAf/S1+'. See also, "The 'Mountain of Cash' on the Sidelines".
