PRIVACY & COOKIE NOTICE
Request a Demo
You're one step closer to unlocking our suite of comprehensive and robust tools.
Fill out the form so we can connect you to the right person.
One of our representatives will be in touch soon to help get you started with your demo.
Principle Stability Fund Ratings
A forward-looking opinion about a fixed-income fund’s capacity to maintain stable principal (net asset value).
A Principal Stability Fund Rating, also known as a "money market fund rating," is a forward-looking opinion about a fixed-income fund's capacity to maintain stable principal (net asset value). When assigning a principal stability rating to a fund, our analysis focuses primarily on the creditworthiness of the fund's investments and counterparties, and also its investments maturity structure and management's ability and policies to maintain the fund's stable net asset value. Principal Stability Fund Ratings are assigned to funds that seek to maintain a stable or an accumulating net asset value.
Generally, when faced with an unanticipated level of redemption requests during periods of high market stress, the manager of any fund may suspend redemptions for up to five business days or meet redemption requests with payments in-kind in lieu of cash. A temporary suspension of redemptions or meeting redemption requests with distributions in-kind does not constitute a failure to maintain stable net asset values. However, higher-rated funds are expected to have stronger capacities to pay investor redemptions in cash during times of high market stress because they generally comprise shorter maturity and higher quality investments.
Principal Stability Fund Ratings, or money market fund ratings, are identified by the 'm' suffix (e.g.,'AAAm') to distinguish the principal stability rating from a S&P Global Ratings traditional issue or issuer credit rating. A traditional issue or issuer credit rating reflects our view of a borrower's ability to meet its financial obligations in full and on time. Principal Stability Fund Ratings are not commentaries on yield levels.
Principal Stability Fund Ratings May Help Your Principal Stability Risk Assessment
The stability of principal is an essential part of the analysis of short-term liquidity funds risk. Our Principal Stability Fund Ratings provide an independent opinion about a fixed-income fund's capacity to maintain stable principal (net asset value).
Robust and Transparent Methodology and Long Track Record
We have been rating money market funds on our Principal Stability Fund Rating scale worldwide since 1984 and are one of the leading rating agencies in this sector. By using our Principal Stability Fund Ratings to supplement your analysis when selecting a money market fund, you can benefit from:
An independent opinion of the risks that could affect stability of principal;
A robust, transparent methodology focused on factors that affect the fund's net asset value, including credit, counterparty, interest-rate and liquidity risks;
Annual review meetings with our fund ratings analytical team;
Weekly monitoring of a fund's holdings as part of the ratings surveillance process, and
An easily understood rating scale.
Sample Criteria for 'AAAm' Rating
Underlying investments have the highest ratings from S&P Global Ratings (minimum 50% short-term rating of 'A-1+' and the remainder 'A-1').
The fund is managed to have a very low sensitivity to interest-rate risks with a weighted average maturity (WAM) limited to a maximum of 60 days, and a maximum weighted average maturity to final WAM(F) of 90 -120 days.
Weekly monitoring of fund holdings by a dedicated surveillance team as part of the rating surveillance process.