Fitch Revises Bond Fund Ratings Applying New Rating Scales

NEW YORK & LONDON & PARIS--()--Fitch Ratings has revised its existing bond fund ratings, applying the revised rating scales published in its Aug. 22, 2016 updated 'Global Bond Fund Rating Criteria'.

THE REVISION RATINGS

Today's rating revisions include the addition of an 'f' suffix to Fund Credit Quality Ratings. The 'f' suffix is intended to better distinguish these ratings from traditional credit ratings assigned to individual issues and issuers. In addition, previously assigned Fund Volatility Ratings have been renamed Fund Market Risk Sensitivity Ratings, and the related rating scale has been revised to 'S1' to 'S6' (from 'V1' to 'V6'). On Aug. 22, 2016, Fitch updated its Ratings Definitions to reflect the new scales.

The revisions announced today impact bond funds domiciled in the APAC, EMEA and North America regions. Revisions to funds domiciled in Latin America will be published at a later date, subject to approval by local market regulators.

Fitch has revised the ratings as follows:

Aberdeen Liquidity Fund (Lux) - Ultra Short Duration Sterling Fund: International Fund Credit Quality Rating to 'AAAf' from 'AAA'; 'S1' Fund Market Risk Sensitivity Rating replaces 'V1' Fund Volatility Rating;

ABSA Money Market Fund: National Fund Credit Quality Rating to 'AA+f(zaf)' from 'AA+(zaf)'; 'S1(zaf)' National Fund Market Risk Sensitivity Rating replaces 'V1(zaf)' National Fund Volatility Rating;

Amundi 3M: International Fund Credit Quality Rating to 'Af' from 'A'; 'S1' Fund Market Risk Sensitivity Rating replaces 'V1' Fund Volatility Rating;

CCLA - CBF Church of England Deposit Fund: International Fund Credit Quality Rating to 'AAAf' from 'AAA'; 'S1' Fund Market Risk Sensitivity Rating replaces 'V1' Fund Volatility Rating;

CCLA - COIF Charities Deposit Fund: International Fund Credit Quality Rating to 'AAAf' from 'AAA'; 'S1' Fund Market Risk Sensitivity Rating replaces 'V1' Fund Volatility Rating;

Ceylon Dollar Bond Fund: International Fund Credit Quality Rating to 'B+f' from 'B+'; 'S5' Fund Market Risk Sensitivity Rating replaces 'V5' Fund Volatility Rating;

City of Houston General Investment Pool: International Fund Credit Quality Rating to 'AAAf' from 'AAA'; 'S1' Fund Market Risk Sensitivity Rating replaces 'V1' Fund Volatility Rating;

Diversified European Credit S.A.: International Fund Credit Quality Rating to 'BBB-f' from 'BBB-'; 'S4' Fund Market Risk Sensitivity Rating replaces 'V4' Fund Volatility Rating;

European Credit Luxembourg S.A.: International Fund Credit Quality Rating to 'BBB-f' from 'BBB-'; 'S4' Fund Market Risk Sensitivity Rating replaces 'V4' Fund Volatility Rating;

FCP Emergence Serenite: National Fund Credit Quality Rating to 'AAAf(mar)' from 'AAA(mar)'; 'S3(mar)' National Fund Market Risk Sensitivity Rating replaces 'V3(mar)' National Fund Volatility Rating;

Florida Municipal Investment Trust 0-2 Year High Quality Bond Fund: International Fund Credit Quality Rating to 'AAAf' from 'AAA'; 'S1' Fund Market Risk Sensitivity Rating replaces 'V1' Fund Volatility Rating;

Florida Municipal Investment Trust 1-3 Year High Quality Bond Fund: International Fund Credit Quality Rating to 'AAAf' from 'AAA'; 'S2' Fund Market Risk Sensitivity Rating replaces 'V2' Fund Volatility Rating;

Florida Municipal Investment Trust Broad Market High Quality Bond Fund: International Fund Credit Quality Rating to 'AAf' from 'AA'; 'S4' Fund Market Risk Sensitivity Rating replaces 'V4' Fund Volatility Rating;

Florida Municipal Investment Trust Intermediate High Quality Bond Fund: International Fund Credit Quality Rating to 'AAAf' from 'AAA'; 'S3' Fund Market Risk Sensitivity Rating replaces 'V3' Fund Volatility Rating;

Henderson Institutional Cash Fund: International Fund Credit Quality Rating to 'AAAf' from 'AAA'; 'S1' Fund Market Risk Sensitivity Rating replaces 'V1' Fund Volatility Rating;

IIFIG Government Liquidity Fund: International Fund Credit Quality Rating to 'AAAf' from 'AAA'; 'S1' Fund Market Risk Sensitivity Rating replaces 'V1' Fund Volatility Rating;

Insight Liquid ABS Fund: International Fund Credit Quality Rating to 'AAAf' from 'AAA'; 'S2' Fund Market Risk Sensitivity Rating replaces 'V2' Fund Volatility Rating;

Lyxor EuroGovies Risk Balanced Fund: International Fund Credit Quality Rating to 'AAf' from 'AA'; 'S2' Fund Market Risk Sensitivity Rating replaces 'V2' Fund Volatility Rating;

Marin County Investment Pool: International Fund Credit Quality Rating to 'AAAf' from 'AAA'; 'S1' Fund Market Risk Sensitivity Rating replaces 'V1' Fund Volatility Rating;

Mega Diamond Money Market Fund, National Fund Credit Quality Rating to 'AA+f(twn)' from 'AA+(twn)'; 'S1(twn)' National Fund Market Risk Sensitivity Rating replaces 'V1(twn)' National Fund Volatility Rating;

Mirae Asset Solomon Money Market Fund: National Fund Credit Quality Rating to 'AA+f(twn)' from 'AA+(twn)'; 'S1(twn)' National Fund Market Risk Sensitivity Rating replaces 'V1(twn)' National Fund Volatility Rating;

Momentum Money Market Fund: National Fund Credit Quality Rating to 'AA+f(zaf)' from 'AA+(zaf)'; 'S1(zaf)' National Fund Market Risk Sensitivity Rating replaces 'V1(zaf)' National Fund Volatility Rating;

Morgan Stanley Institutional Fund Trust Ultra-Short Income Portfolio: International Fund Credit Quality Rating to 'AAAf' from 'AAA'; 'S1' Fund Market Risk Sensitivity Rating replaces 'V1' Fund Volatility Rating;

Paradigm Pion Money Market Fund: National Fund Credit Quality Rating to 'AA+f(twn)' from 'AA+(twn)'; 'S1(twn)' National Fund Market Risk Sensitivity Rating replaces 'V1(twn)' National Fund Volatility Rating;

Riverside County Treasurer's Pooled Investment Fund: International Fund Credit Quality Rating to 'AAAf' from 'AAA'; 'S1' Fund Market Risk Sensitivity Rating replaces 'V1' Fund Volatility Rating;

Royal London Bond Funds ICVC - Royal London Cash Plus Fund: International Fund Credit Quality Rating to 'AAAf' from 'AAA'; 'S1' Fund Market Risk Sensitivity Rating replaces 'V1' Fund Volatility Rating;

Royal London Bond Funds ICVC - Royal London Enhanced Cash Plus Fund: International Fund Credit Quality Rating to 'AAf' from 'AA'; 'S2' Fund Market Risk Sensitivity Rating replaces 'V2' Fund Volatility Rating;

San Bernardino County Investment Pool: International Fund Credit Quality Rating to 'AAAf' from 'AAA'; 'S1' Fund Market Risk Sensitivity Rating replaces 'V1' Fund Volatility Rating;

San Luis Obispo County Treasury Investment Pool: International Fund Credit Quality Rating to 'AAAf' from 'AAA'; 'S1' Fund Market Risk Sensitivity Rating replaces 'V1' Fund Volatility Rating;

Southchester (RF) Limited: International Fund Credit Quality Rating to 'BBB-f' from 'BBB-'; 'S3' Fund Market Risk Sensitivity Rating replaces 'V3' Fund Volatility Rating;

Southchester (RF) Limited: National Fund Credit Quality Rating to 'AA+f(zaf)' from 'AA+(zaf)'; 'S2(zaf)' National Fund Market Risk Sensitivity Rating replaces 'V2(zaf)' National Fund Volatility Rating;

Taishin 1699 Money Market Fund: National Fund Credit Quality Rating to 'AA+f(twn)' from 'AA+(twn)'; 'S1(twn)' National Fund Market Risk Sensitivity Rating replaces 'V1(twn)' National Fund Volatility Rating;

Taishin Ta-Chong Money Market Fund: National Fund Credit Quality Rating to 'AA+f(twn)' from 'AA+(twn)'; 'S1(twn)' National Fund Market Risk Sensitivity Rating replaces 'V1(twn)' National Fund Volatility Rating;

Union Money Market Fund: National Fund Credit Quality Rating to 'AA+f(twn)' from 'AA+(twn)'; 'S1(twn)' National Fund Market Risk Sensitivity Rating replaces 'V1(twn)' National Fund Volatility Rating;

Western Asset Ultra Short Obligations Fund: International Fund Credit Quality Rating to 'AAAf' from 'AAA'; 'S1' Fund Market Risk Sensitivity Rating replaces 'V1' Fund Volatility Rating;

Western Asset Ultra Short Obligations Fund Ltd.: International Fund Credit Quality Rating to 'AAAf' from 'AAA'; 'S1' Fund Market Risk Sensitivity Rating replaces 'V1' Fund Volatility Rating.

RATING SENSITIVITIES
The ratings may be sensitive to material changes in the credit quality or market risk profile of the funds. A material adverse deviation from Fitch's guidelines for any key rating driver could cause Fitch to downgrade a fund's ratings. For example, if credit deterioration occurs such that a fund's weighted average rating factor (WARF) increases beyond criteria levels for a 'AAA(f)' Fund Credit Quality Rating, the rating may be downgraded. Similarly, a material change to a fund's interest rate risk hedging policy or a material increase in spread duration would be expected to negatively affect a fund's Market Risk Sensitivity Ratings.

Additional information is available on www.fitchratings.com

Applicable Criteria
Global Bond Fund Rating Criteria (pub. 22 Aug 2016)
https://www.fitchratings.com/site/re/882068

Additional Disclosures
Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1010709
Endorsement Policy
https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts

Fitch Ratings
Primary Analyst (Diversified European, European Credit Lux., FCP)
Manuel Arrive
Senior Director
+33 144 299 177
or
Primary Analyst (Morgan Stanley, Riverside, San Bernardino, San Luis Obispo, Western Asset)
Greg Fayvilevich
Senior Director
+1-212-908-9151
or
Primary Analyst (Mega Diamond, Mirae, Paradigm, Taishin, Union)
Li Huang
Associate Director
+86 21 5097 3018
or
Primary Analyst (City of Houston, Florida Municipal, Marin)
Chelsea Nguyen
Analyst
+1-646-582 4917
or
Primary Analyst (Aberdeen, Amundi, CCLA, Lyxor)
Charlotte Quiniou, CFA
Director
+33 1 44 29 92 81
or
Primary Analyst (ABSA, Ceylon, Henderson, IIFIG, Insight, Momentum, Royal London, Southchester)
Alastair Sewell, CFA
Senior Director
+44 203 530 1147
or
Secondary Analyst (Amundi, CCLA, Lyxor)
Manuel Arrive
Senior Director
+33 144 299 177
or
Secondary Analyst (Morgan Stanley, Western Asset)
Ralph Aurora
Senior Director
+1-212-908-0528
or
Secondary Analyst (Ceylon)
Kanishka de Silva
Analyst
+94 11 2541 900
or
Secondary Analyst (Florida Municipal)
Greg Fayvilevich
Senior Director
+1-212-908-9151
or
Secondary Analyst (City of Houston, Marin, Riverside, San Bernardino, San Luis Obispo)
Brian Knudsen
Associate Director
+1-646-582-4904
or
Secondary Analyst (ABSA, FCP, Henderson, IIFIG, Insight, Momentum, Royal London, Southchester)
Charlotte Quiniou, CFA
Director
+33 1 44 29 92 81
or
Secondary Analyst (Aberdeen, Diversified European, European Credit)
Alastair Sewell, CFA
Senior Director
+44 203 530 1147
or
Secondary Analyst (Mega Diamond, Mirae, Paradigm, Taishin, Union)
Clark Wu
Associate Director
+886 2 8175 7602
or
Committee Chairperson
Roger Merritt
Managing Director
+1-212-908-0636
or
Media Relations
Hannah James, New York, + 1 646-582-4947
hannah.james@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst (Diversified European, European Credit Lux., FCP)
Manuel Arrive
Senior Director
+33 144 299 177
or
Primary Analyst (Morgan Stanley, Riverside, San Bernardino, San Luis Obispo, Western Asset)
Greg Fayvilevich
Senior Director
+1-212-908-9151
or
Primary Analyst (Mega Diamond, Mirae, Paradigm, Taishin, Union)
Li Huang
Associate Director
+86 21 5097 3018
or
Primary Analyst (City of Houston, Florida Municipal, Marin)
Chelsea Nguyen
Analyst
+1-646-582 4917
or
Primary Analyst (Aberdeen, Amundi, CCLA, Lyxor)
Charlotte Quiniou, CFA
Director
+33 1 44 29 92 81
or
Primary Analyst (ABSA, Ceylon, Henderson, IIFIG, Insight, Momentum, Royal London, Southchester)
Alastair Sewell, CFA
Senior Director
+44 203 530 1147
or
Secondary Analyst (Amundi, CCLA, Lyxor)
Manuel Arrive
Senior Director
+33 144 299 177
or
Secondary Analyst (Morgan Stanley, Western Asset)
Ralph Aurora
Senior Director
+1-212-908-0528
or
Secondary Analyst (Ceylon)
Kanishka de Silva
Analyst
+94 11 2541 900
or
Secondary Analyst (Florida Municipal)
Greg Fayvilevich
Senior Director
+1-212-908-9151
or
Secondary Analyst (City of Houston, Marin, Riverside, San Bernardino, San Luis Obispo)
Brian Knudsen
Associate Director
+1-646-582-4904
or
Secondary Analyst (ABSA, FCP, Henderson, IIFIG, Insight, Momentum, Royal London, Southchester)
Charlotte Quiniou, CFA
Director
+33 1 44 29 92 81
or
Secondary Analyst (Aberdeen, Diversified European, European Credit)
Alastair Sewell, CFA
Senior Director
+44 203 530 1147
or
Secondary Analyst (Mega Diamond, Mirae, Paradigm, Taishin, Union)
Clark Wu
Associate Director
+886 2 8175 7602
or
Committee Chairperson
Roger Merritt
Managing Director
+1-212-908-0636
or
Media Relations
Hannah James, New York, + 1 646-582-4947
hannah.james@fitchratings.com