The rating expires on 15 March 2022.
The upgrade is supported by the Fund’s adherence to all the regulatory requirements for money market funds in Nigeria during the review period (March 2020 – February 2021). We note positively the adherence to stipulated guidelines despite the low yields on money market instruments and the prevalent scarcity of government securities. In addition, the complete adherence to the guidelines in the review period is a marked improvement from our last review when the Fund recorded some breaches in the stipulated weighted average maturity (WAM) limit and minimum investment in government securities. The rating reflects CHD MMF’s low exposure to credit, interest rate and liquidity risks. We have also considered the impact of the weakening macroeconomic environment on the Fund.
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