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Fitch Affirms Amundi 3M at 'Af'/'S1'
October 3, 2016 / 3:22 PM / a year ago

Fitch Affirms Amundi 3M at 'Af'/'S1'

(The following statement was released by the rating agency) PARIS, October 03 (Fitch) Fitch Ratings has affirmed Amundi 3M's Fund Credit Quality Rating at 'Af' and Fund Market Risk Sensitivity Rating at 'S1'. The fund is managed by Amundi (Amundi Group, A+/Stable/F1). The affirmation of the Fund Credit Quality Rating is driven by the high credit quality of the fund as measured by its weighted average rating factor (WARF), which is consistent with a 'Af' Fund Credit Quality Rating, and limited sensitivity to Fitch's stress testing analysis. The distribution of asset ratings and investment guidelines limiting the minimum rating to 'BBB-' (or equivalent) are additional key drivers. The affirmation of the 'S1' Fund Market Risk Sensitivity Rating is driven by the low sensitivity of the fund to interest rate and spread risks, as reflected in its short maturity profile. KEY RATING DRIVERS Weighted Average Credit Quality The fund's weighted average credit quality is high. The WARF was 0.52 at end-August 2016, a level typically associated with a 'AAf' standard. However, Fitch has affirmed the 'Af' Fund Credit Quality Rating to reflect the flexibility the fund has, under its investment guidelines, to increase its allocation to lower quality or longer-dated securities. Fitch understands from the fund that the allocation to such securities may increase, which, all else being equal, would result in a greater WARF that is more consistent with a Fund Credit Quality Rating in the 'Af' category. The fund invests in a diversified portfolio of assets, typically comprising certificates of deposit, commercial paper, time deposits, as well as fixed- and floating-rate corporate bonds. It may also invest in MMFs managed by Amundi that have credit risk profiles similar to that of Amundi, based on their investment guidelines and WARF as at end-August 2016. At end-August 2016, 74% of the fund was rated in the 'A' category or higher and the minimum credit quality of assets was 'BBB-' (less than 1%). Under the fund's investment guidelines, concentration per issuer or counterparty is limited to no more than 10% of the fund's net assets (5% and 3% for the 'BBB+/BBB' and 'BBB-' rated categories, respectively), unless the exposure is to overnight deposits, which may account for up to 20%. Portfolio Sensitivities to Market Risks The fund has low exposure to interest rate and spread risks. Interest rate risk is managed within a maximum duration of six months and is typically maintained below four months. At end-August, the fund had a weighted average maturity (WAM) of 105 days and weighted average life (WAL, which measures sensitivity to spread risk) of 249 days with 80% of total assets maturing within one year. This resulted in a market risk factor well within the 'S1' Fund Market Risk Sensitivity Rating range. Maturity of investments is limited to 397 days and two years for fixed- and floating-rate instruments, respectively. The fund does not use leverage. It may invest in non-euros denominated securities (up to 30%), in which case currency exposure is fully hedged through currency swaps. Fund Profile Amundi 3M is a French-domiciled money market fund pursuant to the UCITS regulation. As of end-August 2016, the fund's total assets stood at EUR14.7bn. Its investor base is well-diversified. The Advisor Amundi, the fund's investment advisor, is a global asset manager with EUR1trn of assets under management at end-June 2016, of which 68% was in money market and fixed income products. Amundi is the largest asset manager in Europe. RATING SENSITIVITIES The ratings may be sensitive to material changes in the fund's credit quality or market risk profile. A material adverse deviation from Fitch's guidelines for any key rating driver could cause Fitch to downgrade the ratings. For example, if credit deterioration occurs such that the WARF increases beyond criteria levels for a 'Af' Fund Credit Quality Rating, the rating may be downgraded. Fitch's WARF stress testing shows that the rating is robust at the current rating level. Potential downgrades to the Fund Market Risk Sensitivity Rating are limited in scope, given the fund's low sensitivity to interest rate and spread risks, and the fund's investment guidelines. Contact: Primary Analyst Charlotte Quiniou, CFA Director +33 1 44 29 92 81 Fitch France S.A.S 60 rue de Monceau 75008 Paris Secondary Analyst Manuel Arrive, CFA Senior Director +33 1 44 29 91 77 Committee Chairperson Gregory Fayvilevich Senior Director +1 212 908 8151 Media Relations: Rose Millburn, London, Tel: +44 203 530 1741, Email: Additional information is available on Applicable Criteria Global Bond Fund Rating Criteria (pub. 22 Aug 2016) here Additional Disclosures Solicitation Status here Endorsement Policy here ail=31 ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEB SITE AT WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF CONDUCT SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE. Copyright © 2016 by Fitch Ratings, Inc., Fitch Ratings Ltd. and its subsidiaries. 33 Whitehall Street, NY, NY 10004. Telephone: 1-800-753-4824, (212) 908-0500. Fax: (212) 480-4435. Reproduction or retransmission in whole or in part is prohibited except by permission. All rights reserved. In issuing and maintaining its ratings and in making other reports (including forecast information), Fitch relies on factual information it receives from issuers and underwriters and from other sources Fitch believes to be credible. Fitch conducts a reasonable investigation of the factual information relied upon by it in accordance with its ratings methodology, and obtains reasonable verification of that information from independent sources, to the extent such sources are available for a given security or in a given jurisdiction. The manner of Fitch's factual investigation and the scope of the third-party verification it obtains will vary depending on the nature of the rated security and its issuer, the requirements and practices in the jurisdiction in which the rated security is offered and sold and/or the issuer is located, the availability and nature of relevant public information, access to the management of the issuer and its advisers, the availability of pre-existing third-party verifications such as audit reports, agreed-upon procedures letters, appraisals, actuarial reports, engineering reports, legal opinions and other reports provided by third parties, the availability of independent and competent third- party verification sources with respect to the particular security or in the particular jurisdiction of the issuer, and a variety of other factors. Users of Fitch's ratings and reports should understand that neither an enhanced factual investigation nor any third-party verification can ensure that all of the information Fitch relies on in connection with a rating or a report will be accurate and complete. Ultimately, the issuer and its advisers are responsible for the accuracy of the information they provide to Fitch and to the market in offering documents and other reports. In issuing its ratings and its reports, Fitch must rely on the work of experts, including independent auditors with respect to financial statements and attorneys with respect to legal and tax matters. Further, ratings and forecasts of financial and other information are inherently forward-looking and embody assumptions and predictions about future events that by their nature cannot be verified as facts. As a result, despite any verification of current facts, ratings and forecasts can be affected by future events or conditions that were not anticipated at the time a rating or forecast was issued or affirmed. The information in this report is provided "as is" without any representation or warranty of any kind, and Fitch does not represent or warrant that the report or any of its contents will meet any of the requirements of a recipient of the report. A Fitch rating is an opinion as to the creditworthiness of a security. This opinion and reports made by Fitch are based on established criteria and methodologies that Fitch is continuously evaluating and updating. Therefore, ratings and reports are the collective work product of Fitch and no individual, or group of individuals, is solely responsible for a rating or a report. The rating does not address the risk of loss due to risks other than credit risk, unless such risk is specifically mentioned. Fitch is not engaged in the offer or sale of any security. All Fitch reports have shared authorship. Individuals identified in a Fitch report were involved in, but are not solely responsible for, the opinions stated therein. The individuals are named for contact purposes only. A report providing a Fitch rating is neither a prospectus nor a substitute for the information assembled, verified and presented to investors by the issuer and its agents in connection with the sale of the securities. Ratings may be changed or withdrawn at any time for any reason in the sole discretion of Fitch. Fitch does not provide investment advice of any sort. Ratings are not a recommendation to buy, sell, or hold any security. Ratings do not comment on the adequacy of market price, the suitability of any security for a particular investor, or the tax-exempt nature or taxability of payments made in respect to any security. Fitch receives fees from issuers, insurers, guarantors, other obligors, and underwriters for rating securities. Such fees generally vary from US$1,000 to US$750,000 (or the applicable currency equivalent) per issue. In certain cases, Fitch will rate all or a number of issues issued by a particular issuer, or insured or guaranteed by a particular insurer or guarantor, for a single annual fee. Such fees are expected to vary from US$10,000 to US$1,500,000 (or the applicable currency equivalent). The assignment, publication, or dissemination of a rating by Fitch shall not constitute a consent by Fitch to use its name as an expert in connection with any registration statement filed under the United States securities laws, the Financial Services and Markets Act of 2000 of the United Kingdom, or the securities laws of any particular jurisdiction. Due to the relative efficiency of electronic publishing and distribution, Fitch research may be available to electronic subscribers up to three days earlier than to print subscribers. For Australia, New Zealand, Taiwan and South Korea only: Fitch Australia Pty Ltd holds an Australian financial services license (AFS license no. 337123) which authorizes it to provide credit ratings to wholesale clients only. Credit ratings information published by Fitch is not intended to be used by persons who are retail clients within the meaning of the Corporations Act 2001

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