Rating Release
Agusto & Co. hereby affirms the rating assigned to Zenith Money Market Fund (‘Zenith MMF’ or ‘the Fund’) to ‘A(f)’.
The rating expires on 19 March 2025.
Agusto & Co. hereby upgrades the rating of Zenith Money Market Fund (“Zenith MMF” or “the Fund”) to A(f). The rating upgrade reflects the Fund’s improved adherence to regulatory guidelines, consistently low exposure to liquidity and interest rate risks as well as support from an established related party financial institution – Zenith Bank Plc. The rating is, however, constrained by increasing unitholder concentration and the breach of the weighted average maturity limit on two occasions. We have also considered the impact of the deteriorating macroeconomic environment on the credit risk profile of collective investment schemes, as fund managers attempt to optimise returns in a bid to exceed inflation in an increasingly competitive environment.