Fitch Affirms 8 SSgA MMFs at 'AAAmmf'
NEW YORK -- April 29, 2013
Fitch Ratings has affirmed the 'AAAmmf' ratings assigned to the following
eight money market funds (MMF) managed by SSgA Funds Management, Inc. (SSgA
--State Street Institutional U.S. Government Money Market Fund;
--State Street Institutional Treasury Plus Money Market Fund;
--State Street Institutional Treasury Money Market Fund;
--State Street Institutional Liquid Reserves Fund;
--SSgA Money Market Fund;
--SSgA Prime Money Market Fund;
--SSgA U.S. Treasury Money Market Fund;
--SSgA U.S. Government Money Market Fund.
KEY RATING DRIVERS:
--High credit quality;
--Short maturity profile;
--Minimal exposure to interest rate risk;
--The capabilities and resources of SSgA FM as investment advisor.
The 'AAAmmf' ratings reflect the funds' extremely strong capacity to achieve
their investment objectives of preserving principal and providing shareholder
liquidity through limiting credit, market, and liquidity risk.
FUNDS OBJECTIVES AND STRUCTURE
The funds seek to maximize current income to the extent consistent with
preservation of capital and liquidity and the maintenance of a stable $1.00
per share net asset value. Collectively, the funds had assets under management
of $79.7 billion as of April 3, 2013.
The SSgA U.S. Government Money Market Fund and the State Street Institutional
U.S. Government Money Market Fund invest primarily in obligations of the U.S.
government and repurchase agreements backed by such securities. These
securities may bear fixed, variable or floating rates of interest or may be
zero coupon securities.
The SSgA Treasury Money Market Fund and the State Street Institutional
Treasury Plus Money Market Fund invest principally in obligations of the U.S.
Treasury and repurchase agreements backed by such obligations. The
Institutional Treasury Portfolio invests substantially all of its net assets
in U.S. Treasury securities.
The SSgA Money Market Fund, SSgA Prime Money Market Fund, and the State Street
Institutional Liquid Reserves Fund invest in a broad range of money market
instruments, including instruments issued or guaranteed by the U.S.
government, banks' certificates of deposit and other bank instruments,
commercial paper, asset backed securities, corporate obligations and
The Prime funds have recently temporarily exceeded the 'AAAmmf' 1.5 threshold
for Fitch's Portfolio Credit Factor (PCF) metric. The PCF is a risk-weighted
measure of the funds' portfolio assets accounting for credit quality and
maturity profile. Fitch's MMF rating criteria allows for temporary deviations,
and therefore the Prime funds are deemed consistent with a 'AAAmmf' rating.
Consistent deviations from Fitch's rating criteria in the future may
negatively impact the ratings.
MARKET RISK AND LIQUIDITY PROFILE
The funds seek to manage their market risk exposures by limiting their
weighted average maturity to reset date (WAM) and weighted average life (WAMf)
to 60 and 120 days, respectively, consistent with Fitch's 'AAAmmf' rating
In line with Fitch's rating criteria, the funds invest at least 10% of their
total assets in securities maturing overnight or other qualifying assets such
as U.S. Treasuries and at least 25% of their total assets in securities
maturing within seven days or other qualified assets. As of April 3, 2013, the
funds fully met these liquidity requirements.
SSgA FM serves as the investment advisor to each fund and as such directs the
management of each fund's investment portfolio. SSgA FM is a subsidiary of
State Street Corp. (rated 'A+/F1+' by Fitch), and together with other
subsidiaries, comprise State Street Global Advisors (SSgA), the investment
management arm of State Street Corp. As of March 31, 2013, SSgA had assets
under management of approximately $2.2 trillion.
State Street Corp. is one of the world's largest providers of financial
services to institutional investors, including investment servicing,
investment management, and investment research and trading. Fitch views State
Street Corp. and SSgA FM's investment advisory capabilities, financial and
resource commitments, operational controls, corporate governance, and
compliance procedures as consistent with the 'AAAmmf' ratings assigned to
RATING SENSITIVITY AND SURVEILLANCE
The ratings may be sensitive to material changes in the credit quality or
market risk profiles of the funds. A material adverse deviation from Fitch
guidelines for any key rating driver could cause the ratings to be lowered by
Fitch. Furthermore, given the funds' primary investment focus on domestic and
foreign issuers in the financial sector, the ratings may be sensitive to
material adverse changes in the sector globally.
Fitch receives weekly fund holdings information and other pertinent fund data
from the funds' administrator to conduct surveillance against ratings
guidelines and maintain its money market fund ratings.
Additional information is available at 'www.fitchratings.com'.
The sources of information used to assess this rating were the public domain
and SSgA FM.
Applicable Criteria and Related Research:
--'Global Money Market Fund Rating Criteria' (Mar. 26, 2013);
--'U.S. MMFs: Fourth-Quarter Review and Outlook' (Jan. 24, 2013).
Applicable Criteria and Related Research
Global Money Market Fund Rating Criteria
U.S. MMFs: Fourth-Quarter Review and Outlook
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS.
PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK:
HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING
PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND
METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF
CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL,
COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM
THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER
PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS
OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN
EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER
ON THE FITCH WEBSITE.
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
+49 69 768 076 242
Press spacebar to pause and continue. Press esc to stop.