Agusto & Co has given the FBN Money Market Fund an ‘Aa-(f)’ rating.
It said the rating assigned to the fund reflected its minimal to low exposure to downside risk (impairment to the net asset value) in the medium term, and would expire on November 30, 2019.
According to a statement by the rating organisation, the FBN MMF has maintained low exposure to credit risk by investing in good quality assets with minimum credit rating of ‘Bbb’ in local currency.
The statement said the fund had also kept a good proportion of investments in liquid FGN securities, with an average of 46 per cent during the review period.
“There are currently no fixed cash holding requirements but FBN MMF maintains staggered maturities to support liquidity,” it added.
According to Agusto & Co, the fund surpassed the regulatory weighted average maturity 90-day threshold on a number of occasions and has maintained a maximum term to maturity of less than a year for all securities.