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TEXT-Fitch rates Amundi Money Market Fund 'AAAmmf'
July 16, 2012 / 2:43 PM / 5 years ago

TEXT-Fitch rates Amundi Money Market Fund 'AAAmmf'

July 16 - Fitch Ratings has assigned Amundi Money Market Fund- Short Term
(GBP) a 'AAAmmf' Money Market Fund Rating. The fund is a sub-fund of Amundi
Money Market Fund, managed by Amundi.

The main rating drivers are:
-- The portfolios' overall credit quality and diversification.
-- High overnight and one-week liquidity, consistent with funds' shareholders
profile and concentration.
-- Amundi's capabilities and resources as investment manager.

Consistent with Fitch's 'AAAmmf' money market fund rating criteria, the fund
seeks to maintain a high credit quality by investing exclusively in short-term
securities rated at least 'F1' by Fitch or a comparable credit quality by other
global rating agencies. Repo counterparties are also highly rated and
transactions fully collateralized with high quality government bonds or AAA
rated covered bonds. Also in line with Fitch's criteria, the fund limits its
exposures to individual issuers and counterparties.

The fund seeks to limit interest rate and spread risk consistent with Fitch's
ratings criteria for funds rated 'AAAmmf'. It limits its weighted average
maturity to reset date (WAM) and weighted average life (WAL) to 60 days and 90
days, respectively. The fund also limits the maturity date of any single
investment to 397 days or less. Interest rate exposure is also maintained low
via direct investments in assets indexed to SONIA or hedged into SONIA via
interest rate swaps. Consistent with Fitch's criteria, currency hedges are
limited to 10% or less of the portfolio.

The fund seeks to manage investor redemption risk through investment
restrictions that aim to maintain sufficient levels of daily and weekly
liquidity. In line with Fitch's rating criteria, the funds seek to maintain at
least 10% of their assets in securities maturing overnight or other qualifying
liquid assets such as government securities and at least 25% in securities
maturing within seven days or other qualified liquid assets. In the short term,
Amundi will be the main investor in the fund via around GBP400m seed capital.

The funds may have some exposure to Credit Agricole ('A+'/Negative/'F1+'), the
funds' ultimate parent, through overnight cash positions deposited at the bank,
and exposures via repurchase agreements under 10%.

The fund's objective is to offer capital preservation and liquidity, while
providing a competitive level of return. The fund pursues its investment
objective by investing in a diversified portfolio of short-term money market
instruments including repurchase agreements backed by highly rated collateral,
time deposits, commercial paper, certificates of deposit, corporate bonds and
notes, asset-backed commercial papers (ABCP), government and government agency
debt as well as repurchase agreements. The fund's pricing policy requires the
NAV of the fund to be carried at the mark-to-market value of the portfolio any
time the portfolio's mark-to-market NAV deviates from amortized cost by more
than 5bps at the portfolio level or 40 bps at an individual asset level. Given
the fund's profile, Fitch considers the likelihood of this happening low and,
even if it were to occur, the impact would be consistent with principal
stability as defined by Fitch for its MMF ratings.

Amundi, the funds' investment advisor, is 75% owned by Credit Agricole and 25%
Societe Generale ('A+'/Negative/'F1+'). With EUR658bn of assets under management
at end 2011, Amundi is the second-largest asset manager in Europe. As of
end-December 2011, it had EUR118bn of assets in money market funds. Fitch views
Credit Agricole's financial and resource commitments, and Amundi's investment
advisory capabilities, financial and resource commitments, operational controls,
corporate governance, and compliance procedures as consistent with 'AAAmmf'
ratings assigned to these funds.

Amundi Money Market Fund- Short Term (GBP) is a sub-fund of the
Luxembourg-domiciled umbrella SICAV Amundi Money Market Fund. The euro and US
dollar sub-funds are also rated by Fitch at 'AAAmmf'. The three sub-funds are
classified as Short-Term Money Market Fund under the ESMA MMF definition.

The ratings may be sensitive to material changes in the credit quality or market
risk profiles of the funds. A material adverse deviation from Fitch's guidelines
could cause Fitch to downgrade the ratings.Additional information is available at

The ratings above were solicited by, or on behalf of, the issuer, and therefore,
Fitch has been compensated for the provision of the ratings.

The sources of information used to assess this rating were the public domain,
Amundi and Caceis, the funds' administrator.

Applicable criteria, 'Global Money Market Fund Rating Criteria', dated 29 March
2012 are available at

Applicable Criteria and Related Research:
Global Money Market Fund Rating Criteria
Sector Update - European Money Market Funds

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