Rating Release
Agusto & Co assigns Bbb+(f) rating to GDL Money Market Fund.
The rating expires on 31 December 2019.
Agusto & Co assigns a Bbb+(f) rating to GDL Money Market Fund (“GDL MMF” or “the Fund”). The rating reflects the Fund’s low exposure to credit risk, upheld by an average investment of 65.6% of net assets in FGN securities which we consider to be of Aaa credit quality in national rating scale. However, GDL MMF has an above average exposure to interest rate risk, relative to other money market funds in Nigeria, underpinned by a weighted average maturity in excess of 170days over the review period. Nonetheless, the Fund’s exposure to liquidity risk is low, given the substantial investment in highly liquid FGN securities.