Moody's assigns credit and market risk ratings to 5 funds
New York, September 03, 2008 -- Moody's Investors Service has assigned investment-grade fund
and market risk ratings to five fixed-income funds managed and
administered by BBVA Bancomer.
The ratings for each portfolio express Moody's global local currency
scale, a Mexican national scale, and the Mexican regulatory
The ratings reflect Moody's opinion on the weighted average maturity,
adjusted credit quality of each portfolio, investment guidelines
and the fund sponsor's conservatism in managing to stated guidelines
for each portfolio.
"Four of the newly rated funds are income oriented with total exposure
to high credit quality Mexican government obligations and one portfolio
is oriented toward principal preservation through Mexican banks securities,"
said Moody's Analyst José Angel Montaño. "All
share a short-term investment strategy."
Each portfolio was also assigned a market risk rating expressing Moody's
opinion on the sensitivity of fund net asset value and return profile
relative to changes in market conditions. Moody's also translated
its market risk rating to the volatility rating expressed in accordance
with Comisión Nacional Bancaria y de Valores (CNBV) regulatory,
"Ratings incorporate an assessment of BBVA Bancomer's security
selection process and credit quality of portfolio assets,"
said Montaño. "The newly rated funds offer complementary
product choices for retail and institutional investors."
BBVA Bancomer Gestión, S.A. de C.V.,
has one of the most complete and diverse line of funds in the Mexican
fund market, is Mexico's largest company in the mutual fund
industry and has more than US$ 19.2 billions in assets under
"All of Moody's mutual fund ratings are opinions about the
investment quality of shares in the funds that invest principally in short-
and long-term fixed-income securities," said
Montaño. "The ratings incorporate Moody's analysis
of the fund's published investment objectives and policies,
the creditworthiness of the assets held by the fund, and its management
The national scale ratings are opinions about the relative creditworthiness
of issuers in a particular country and may be used in specific local capital
markets. Moody's market risk rating is an opinion about the
fund's net asset value sensitivity under certain market conditions.
"In forming an opinion of a fund's future price volatility,
we consider risk elements that may have an effect on a fund's net
asset value, including interest rate risk, prepayment and
extension risk, liquidity and concentration risk, currency
and derivatives risk," Montaño said. "The
ratings are not intended to consider prospective performance of a fund
with respect to price, appreciation or yield."
Bellow is the list of the assigned fund ratings:
Fund name; Fund Ticker; Moody's Global Local Currency
Rating; Moody's National Scale Credit Rating / Market Risk;
CNBV Credit / Market Risk.
Fondo Líquido, S.A. de C.V.;
DMD-1; A; Aaa.mx / MR1; AAA / 1
Fondo Deuda CP 1, S.A. de C.V.;
DCP-1; Baa; Aaa.mx / MR1; AAA / 1
Fondo Deuda Mercado 1, S.A. de C.V.;
DMC-1; Baa; Aaa.mx / MR2; AAA / 3
Fondo Guber 1, S.A. de C.V.; GUB-1;
Baa; Aaa.mx / MR1; AAA / 1
Fondo Garantía 1, S.A. de C.V.;
GRD-1; A; Aaa.mx / MR1; AAA / 1
Moody's Mexican National Scale Fund Credit Ratings:
Aaa.mx: strongest quality relative to other domestic issuers
Aa.mx: high quality relative to other domestic issuers
A.mx: above average quality relative to other domestic issuers
Baa.mx: average quality relative to other domestic issuers
Ba.mx: below average quality relative to other domestic issuers
B.mx: weak quality relative to other domestic issuers.
Moody's domestic scale fund ratings reflect Moody's assessment of portfolio
credit quality within the context of the Mexican fixed-income market
and are not comparable to its global credit rating scale.
Moody's Market Risk Rating Scale:
MR1: Very Low
MR5: Very High
Homogeneous Fund Volatility Rating Scale - CNBV
1 Extremely low sensitivity to changes in market conditions
2 Low sensitivity to changes in market conditions
3 Between low to moderate sensitivity to changes in market conditions
4 Moderate sensitivity to changes in market conditions
5 Between moderate to high sensitivity to changes in market conditions
6 High sensitivity to changes in market conditions
7 Very high sensitivity to changes in market conditions
Jose Angel Montano
Asst Vice President - Analyst
Structured Finance Group
Moody's de Mexico S.A. de C.V
VP - Senior Credit Officer
Structured Finance Group
Moody's Investors Service