RWNs Loom Large for MMFs
0Fitch Ratings yesterday announced they are close to completing a review of rated Money Market Funds (MMFs) which followed a spate of negative bank ratings actions by the agency. While a number of MMFs subsequently fell foul of Fitch’s global MMF rating critera, Fitch believes that the “appropriate corrective adjustments are being implemented by fund managers”.
Fitch also noted, however, “that MMFs remain exposed to further potential negative bank rating actions”, in view of their exposure to several banks on Ratings Watch Negative including Barclays plc, Credit Suisse, Morgan Stanley, Bank of America, Goldman Sachs, and UniCredit S.p.A..
The ratings agency continues to monitor how “MMFs adjust their portfolios in response to recent and potential future bank downgrades”.
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