Fitch Revises Rating Action on Investec Money Market Fund; Withdraws Ratings
OREANDA-NEWS. Fitch Ratings has revised its rating action on Investec Money Market Fund to an affirmation and removed the rating from Rating Watch Negative (RWN). It has simultaneously withdrawn the ratings.
The rating actions are as follows:
-Investec Money Market Fund
National Fund Credit Quality Rating (NFCQR) affirmed at 'AA+(zaf)' and removed from RWN; rating withdrawn
National Fund Volatility Rating (NFVR) affirmed at 'V1(zaf)'; rating withdrawn
The revision of the rating action, to an affirmation from a downgrade, followed the receipt of the latest information from the fund relating to its holding in African Bank.
KEY RATING DRIVERS
The removal of the RWN on the Investec Money Market Fund is driven by the resolution of African Bank, effective as of 4 April 2016, in which the fund held a small position. The resolution of African Bank substantially reduces uncertainty in the value of African Bank securities and clears the way for their eventual sale or maturation. Consistent with the rating sensitivities outlined in previous rating action commentaries relating to this fund, Fitch considered the presence of African Bank a material source of uncertainty in its rating analysis, which drove the RWN.
The Investec Money Market Fund subsequently sold its position in African Bank in April 2016.
The affirmation of the NFCQR therefore reflects the high credit quality of its remaining holdings. The affirmation of the NFVR reflects the fund's low and stable market risk profile.
On 17 May 2016 Fitch had downgraded this fund. Following the more recent receipt of information that the fund had already sold its African Bank holding, Fitch reviewed its rating decision and revised it to an affirmation.
Fitch has withdrawn the ratings as Investec Asset Management has chosen to stop participating in the rating process due to the change in Fitch's regulatory status in South Africa. Therefore, Fitch will no longer have sufficient information to maintain the ratings. Accordingly, Fitch will no longer provide ratings or analytical coverage for this fund.