Agusto & Co. affirms the Aa(f) rating assigned to Stanbic IBTC Money Market Fund (‘SIMMF’ or ‘the Fund’).
The rating expires on 21 December 2022.
Agusto & Co. affirms the Aa(f) rating assigned to Stanbic IBTC Money Market Fund (‘SIMMF’ or ‘the Fund’). The rating reflects the Fund’s good investment process, minimal exposure to interest rate risk, and low exposure to liquidity risk. However, SIMMF’s rating is constrained by higher credit risk exposure in the 12 months to 30 November 2021, with consistent breaches in the stipulated minimum investment in low-risk government securities. Nonetheless, we note positive efforts by the Manager to shore up the Fund’s portfolio with investments in Federal Government-backed/collaterised instruments to moderate exposure to credit risk in the review period (December 2020 – November 2021). We have also taken into consideration the weakening macroeconomic environment and the impact of the persistent low yield environment on the Fund.