Fitch Downgrades Municipal Oblig Fund
A press release posted late yesterday is titled "Fitch Downgrades Federated Municipal Obligations Fund to 'Ammf' on Increased 'F2' Exposure". It says, "Fitch Ratings has downgraded Federated Municipal Obligations Fund to 'Ammf' from 'AAmmf'. The downgrade reflects the fund's increased exposure to assets rated 'F2' (or equivalent), as well as the expectation that 'F2' (or equivalent) rated assets will remain at or near 5% on a going forward basis. Federated Municipal Obligations Fund is a tax exempt money market fund managed by Federated Investment Management that invests primarily in short-term, high-quality, tax-exempt securities. Approximately 80% of the fund's total assets are invested in variable-rate demand notes (VRDNs).... The increase in 'F2' (or equivalent) assets follows the downgrade of SunTrust Bank (SunTrust) to 'BBB+/F2' from 'A-/F1' on March 26, 2010."
