JCR-VIS reaffirms stability rating of ABL Fund

31 Dec, 2011

JCR-VIS Credit Rating Company Ltd has reaffirmed the Fund Stability Rating of ABL Cash Fund at 'AA+(f)' (Double A Plus(f). The rating action takes into account the investment policy of the fund, which targets minimum allocation of 50 percent to government securities. Up to 50 percent of remaining assets may be invested in term deposits, money market placements, cash in bank accounts and reverse repo transactions, with institutions rated at least AA.
The fund may also invest in commercial papers and certificates of investment, certificates of deposit and certificates of Musharaka issued by NBFCs (minimum rating AAA) to the extent of 10 percent of net assets. With exposures currently being maintained with counterparties rated AA and above, credit risk thereon is considered low. As a money market fund, target duration is capped at 90 days. Given the increased uncertainty prevailing in the current interest rate scenario, target duration may need to be reduced to limit the fund's exposure to interest rate risk.-PR

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