Fitch Ratings has affirmed
KEY RATING DRIVERS
The affirmation of the National Fund Credit Quality Rating reflects the sustained 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 fund's weighted-average rating factor (WARF) suggested a rating of 'AAAf(twn)' at
The affirmation of the National Fund Market Risk Sensitivity Rating is driven by the fund's low exposure to interest rate and spread risk, as reflected in the short maturity profile of the fund's assets.
ASSET CREDIT QUALITY
The portfolio has high average credit quality, as measured by its WARF of 0.14 at
The fund has high industry concentration in the Taiwanese banking and finance sector, which has a stable credit outlook. The fund's top-five issuers represented 29% of assets under management. This was lower than the peer average of 35%.
PORTFOLIO SENSITIVITY TO MARKET RISK
The market risk factor was 0.23 at
FUND PROFILE
The fund invests in time deposits, commercial paper and repos. It has total assets under management of
INVESTMENT MANAGER
Fitch considers the investment manager to be 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 are 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 downgrade. Specifically, the increase of '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 does not expect a change in the National Fund Market Risk Sensitivity Rating due to the fund's short maturity profile, but a downgrade could stem from a structural change in
The fund manager provides Fitch with monthly information, including details of the portfolio's holdings, credit quality and transactions, to maintain the bond fund ratings. Fitch monitors the credit composition of the portfolio, the credit counterparties used by the manager and the overall market-risk profile of the investments.
RATING CRITERIA
Fitch rates money market funds in
RATING ACTIONS
Entity / Debt
Rating
Prior
Natl Fund Cr Qual
AA+f(twn)
Affirmed
AA+f(twn)
Natl Sensitivity
S1(twn)
Affirmed
S1(twn)
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