Rating Release
Agusto & Co. hereby downgrades the rating of Meristem Money Market Fund to A(f)
The rating expires on 20 December 2023.
Agusto & Co hereby downgrades the rating of Meristem Money Market Fund (‘Meristem MMF’ or ‘the Fund’) to A(f). The rating reflects Meristem MMF’s continued and significant exposure to entities at the lower end of the acceptable rating scale which we deem to have moderate credit risk. The Fund breached the 25% stipulated minimum investment in Federal Government of Nigeria securities on three occasions and the limited capacity of the research team for credit analysis. Nonetheless, we recognise Meristem MMF’s low exposure to interest rate and liquidity risks. We have also considered the impact of the weakening macroeconomic environment, which has elevated credit risk.