MOODY'S ASSIGNS RATINGS TO 5 NEW SUB-FUNDS, AFFIRMS THE RATINGS ASSIGNED TO 7 SUB-FUNDS AND DOWNGRADES 3 SUB-FUNDS ALL MANAGED BY DEXIA ASSET MANAGEMENT
Moody's Investors Service has assigned the following ratings:
- Aaa/MR3 to Dexia Bonds USD
- Aaa/MR3 to Dexia Index Euro Bonds;
- Aaa/MR4 to Dexia Bonds Global Europe;
- Aa/MR3 to Dexia Bonds Euro Government Plus and
- Aa/MR4 to Dexia Bonds Euro.
The four Dexia Bonds sub-funds are part of the Dexia Bonds umbrella fund, which has been registered in Luxembourg on the official list of undertakings for collective investment (UCIs) under the law of March 30, 1988.
The Dexia Index Euro Bonds is a sub-fund of the Belgian Dexia Index umbrella fund.
A quite experienced asset manager using well-developed portfolio management, trading, audit and compliance systems, manages these five sub-funds: Dexia Asset Management (Dexia AM). Dexia AM is the research, financial analysis and asset management centre of the Dexia group. It specialises in the management of assets of institutional clients, undertakings for collective investment and private clients.
The credit ratings of the funds reflect the advisor’s focus on investment quality, including the ability to provide a high level of liquidity to meet redemption needs.
Dexia Banque Internationale à Luxembourg (Dexia BIL) acts as custodian and administrative service provider for the Luxembourg-based funds and Dexia Bank Belgium fulfils these tasks for Dexia Index Euro Bonds, Dexia Allocation and Dexia Invest. In both cases, Moody’s notices the custodian banks’ solid internal control environment as well as the high quality of the accounting, administration and custody services provided to the sub-funds.
Moody's Investors Service has affirmed the ratings of the following Belgian-domiciled bond funds:
- Aaa/MR3 to Dexia Allocation European Bonds
- Aaa/MR3 to Dexia Index European Bonds
- Aa/MR3 to Dexia Allocation Belgian Bonds
- Aa/MR3 to Dexia Allocation Euro Bonds
- Aa/MR3 to Dexia Allocation Mortgage Bonds
- Aa/MR3 to Dexia Index Belgian Bonds and
- Aa/MR3 to Dexia Invest Euro Bonds.
Moody's Investors Service has also reviewed the ratings assigned to:
- Dexia Allocation International Bonds to Aa/MR4 from Aaa/MR4;
- Dexia Index International Bonds to Aa/MR4 from Aaa/MR4 and
- Dexia Invest Euro Corporate Bonds to A/MR3 from Aa/MR3.
The change in ratings for these three Belgian sub-funds only reflects the credit quality deterioration of the investment universe of their indices (further to Japan’s downgrade to A2 from Aa1), which are the JPM Global Traded Index for the first two sub-funds and the Lehman Brothers Euro Corporate for the Dexia Invest Euro Corporate Bonds sub-fund.
Dexia Allocation is authorised for sale in: Belgium, France, Luxembourg, The Netherlands and Switzerland.
Dexia Index is authorised for sale in: Belgium, France, Luxembourg, The Netherlands and Switzerland.
Dexia Bonds is authorised for sale in: Belgium, France, Germany, Italy, Luxembourg, The Netherlands, Spain and Switzerland.
Dexia Invest is authorised for sale in: Belgium, France, Luxembourg, The Netherlands and Switzerland.
Moody's bond fund credit ratings are opinions of the investment quality of shares in mutual funds, which principally invest in long-term fixed income bonds. Bond funds rated Aaa, Aa and A are respectively judged to be of an investment quality similar to Aaa / Aa / A-rated fixed income bonds-that is, they are judged to be of the best / high quality / or possess many favorable investment attributes.
In addition to a credit quality rating, Moody’s also assigns a market risk rating using a five-tiered numerical scale. Funds with the least sensitivity to market changes will receive an MR1 rating, whilst the most sensitive funds will be rated MR5.
MR3 and MR4 ratings indicate respectively the funds’ moderate / high sensitivity to changing interest rates and other market conditions.
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