S&P redefines money market and bond fund credit ratings

clock

Standard & Poor's Ratings Services has renamed its money market fund and bond fund credit quality ratings as "Principal Stability" fund ratings and "Fund Credit Quality" ratings in the hope it will better reflect the meaning of associated investment classes.

Money market fund ratings will now be known as ‘principal stability’ ratings because S&P’s analysis is based on the stable net or accumulating asset value of each fund, however there will be no difference to the ratings symbols. Money market funds can be rated from AAAm – “a fund rated 'AAAm' has extremely strong capacity to maintain principal stability and to limit exposure to principal losses due to credit, market, and/or liquidity risks” says S&P while a Dm fund “has failed to maintain principal stability resulting in a realized or unrealized loss of principal”. Change from the "bo...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Darius McDermott: Old demographics, new innovations — so why isn't healthcare booming?

Darius McDermott: Old demographics, new innovations — so why isn't healthcare booming?

'The sector should be flying — but it isn't'

Darius McDermott
clock 08 May 2025 • 5 min read
Why China's journey to net zero demands investors' attention

Why China's journey to net zero demands investors' attention

China's journey towards net zero could yet prove more rapid than expected

Gabriel Sacks
clock 07 May 2025 • 4 min read
Morningstar CEO: Advisers and industry need 'shared language' around risk

Morningstar CEO: Advisers and industry need 'shared language' around risk

Kapoor points to UK regulation becoming more ‘goals focused’

Sahar Nazir
clock 07 May 2025 • 2 min read