Agusto & Co. affirms the A(f) rating of First Ally Money Market Fund
The rating expires 27 April 2023
Agusto & Co. affirms the A(f) rating of First Ally Money Market Fund (“First Ally MMF” or “the Fund”). The rating is upheld by the Fund’s sizeable holding of Federal Government of Nigeria (FGN) securities, despite the low yielding interest environment. The rating also reflects First Ally MMF’s low exposure to liquidity risk and interest rate risk.
However, the rating is constrained by the Fund’s increased credit risk due to the shift in allocation towards the lower end of the acceptable rating buckets and significant concentration in the unitholder base. We have also considered the weak economic environment and the impact of the prevailing low yields on money market securities in Nigeria.