S&P Upgrades SSGA Standard Euro
A press release, "Two State Street Global Advisors Standard Money Market Funds Ratings Raised Following Review," tells us, "S&P Global Ratings ... raised to 'AAf' from 'AA-f' its fund credit quality ratings (FCQRs) on two funds managed by State Street Global Advisors Ltd. (SSGA): State Street EUR Liquidity Standard VNAV Fund; and State Street GBP Liquidity Standard VNAV Fund. In our view, the portfolio credit quality of the funds is very strong. At the same time, we affirmed our 'S1+' fund volatility ratings (FVRs) on these two funds. Based on our Fund Credit Quality matrix, in quantitative terms we consider these two standard money market funds to have high credit quality investments. SSGA's conservative fund management, the improved credit quality of the fund, and the application of portfolio metrics associated with the EU's Money Market Fund Regulation 2017/1131 (EUMMFR) supports the upgrade. These metrics include maximum limits on a fund's weighted-average maturity and weighted-average life and minimum daily (7.5%) and weekly (15%) liquidity requirements. These metrics were not in effect when S&P Global Ratings first assigned its FCQR to these funds in 2014. Therefore, we would have recognized these portfolios as bond funds -- in 2019, they are defined as standard money market funds under EUMMFR." It adds, "State Street EUR Liquidity Standard VNAV Fund and State Street GBP Liquidity Standard VNAV Fund are subfunds within State Street Liquidity PLC, an open-ended investment company constituted as an umbrella fund with segregated liability between subfunds authorized by the Central Bank of Ireland pursuant to the Directive relating to Undertakings for Collective Investment in Transferable Securities (UCITS2) and the EUMMFR. There are 12 subfunds within the company structure and each of them conforms to the regulatory guidelines set down in the EUMMFR. The objective of these two subfunds, as set out in the umbrella fund's prospectus, is to provide a return in excess of the fund's currency money market rates, preserve capital, and maintain a reasonable level of liquidity. Administration and depositary services continue to be provided by State Street Fund Services (Ireland) Ltd. and State Street Custodial Services (Ireland) Ltd., respectively." In other ratings news, another press release, "Moody's assigns Aaa-mf to Western Asset sponsored money market funds," tells us, "Moody's Investors Service ("Moody's") has assigned an Aaa-mf rating to each of the following Western Asset Management sub-advised money market master funds: Government Reserves Portfolio, U.S. Treasury Obligations Portfolio, and U.S. Treasury Reserves Portfolio. Rating action summary: Government Reserves Portfolio - assigned Aaa-mf, U.S. Treasury Obligations Portfolio - assigned Aaa-mf, and U.S. Treasury Reserves Portfolio - assigned Aaa-mf." Moody's writes, "The Aaa-mf ratings of each of these three master funds reflect the strong underlying credit and liquidity profiles of their portfolios and the conservative investment strategies employed in their pursuits to generate income while preserving capital and maintaining liquidity for their respective shareholders."
