Fitch Ratings has affirmed
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)' as of
The National Fund Market Risk Sensitivity Rating is driven by the fund's very low exposure to interest-rate and spread risk, as reflected in its short weighted-average and individual asset maturity profiles.
ASSET CREDIT QUALITY
The fund shows high credit quality with 100% of its assets rated in the 'A(twn)' to '
The fund has high industry concentration in the Taiwanese banking and finance sector, whose credit outlook is stable. The top-five issuers represent 52% of the fund's assets under management, higher than the rated peer average of 35%.
PORTFOLIO SENSITIVITY TO MARKET RISK
The market risk factor (MRF) was 0.16 at
FUND PROFILE
The fund mainly invests in time deposits, commercial paper and repurchase agreements. The fund has approximately
INVESTMENT MANAGER
Fitch considers the investment manager suitably qualified, competent and capable of managing the fund. The fund is managed by
UPAMC ranks 15th among 39 asset managers in
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, 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 expects the National Fund Market Risk Sensitivity Rating to remain stable due to the fund's short maturity profile. However, Fitch would expect to downgrade the rating if interest-rate or market volatility in
UPAMC provides Fitch with monthly information, including details of the portfolio's holdings, credit quality and transactions, to maintain the fund's ratings. Fitch monitors the portfolio's credit composition, 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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Additional information is available on www.fitchratings.com
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