Fitch Ratings has assigned
KEY RATING DRIVERS
The National Fund Credit Quality Rating reflects the high credit quality and short maturity profile of the fund's assets. Fitch bases the rating on the fund's actual and prospective credit quality. The weighted-average rating factor (WARF) suggested a rating of 'AAAf(twn)' at
The National Fund Market Risk Sensitivity Rating is driven by the fund's very low exposure to interest-rate and spread risk, reflected in its short weighted-average and individual asset maturity profiles.
ASSET CREDIT QUALITY
The fund invests 98% of the assets in the 'A(twn)' to '
The fund has high industry concentration in the Taiwanese banking and finance sector, whose credit outlook is neutral. The top-five issuers represent 33% of the fund's assets under management, lower than the rated peer average of 35%.
PORTFOLIO SENSITIVITY TO MARKET RISK
The market risk factor was 0.25 at
The weighted-average maturity of the fund was 79 days at
FUND PROFILE
The fund mainly invests in time deposits, commercial papers and repurchase agreements. The fund had approximately
INVESTMENT MANAGER
Fitch considers the investment manager suitably qualified, competent and capable of managing the fund. The fund is managed by
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive rating action/upgrade:
An upgrade of the National Fund Credit Quality Rating is possible if the credit quality of the underlying assets improves, the weighted-average maturity becomes shorter and the investment strategy supports the improvement in the long term.
Factors that could, individually or collectively, lead to negative rating action/downgrade:
The ratings may be sensitive to significant changes in the fund's credit quality or market-risk profile. A large, adverse deviation from Fitch's guidelines for any key rating driver could lead to a rating downgrade. Specifically, an increase in 'BBB(twn)' rated securities and an extension of asset maturity could negatively affect the WARF. The fund's rating is also sensitive to deterioration in the credit quality of
Fitch expects the National Fund Market Risk Sensitivity Rating to remain stable due to the fund's short maturity profile. However, Fitch would downgrade the rating if interest rates or market volatility in
RATING CRITERIA
Fitch rates MMFs in
Date of Relevant Committee
RATING ACTIONS
Entity / Debt
Rating
Natl Fund Cr Qual
AA+f(twn)
New Rating
Natl Sensitivity
S1(twn)
New Rating
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VIEW ADDITIONAL RATING DETAILS
Additional information is available on www.fitchratings.com
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