September 26, 2012 / 4:16 PM / 5 years ago

TEXT-Fitch affirms three MMFs managed by Invesco at 'AAAmmf'

Sept 26 - Fitch Ratings has affirmed three Dublin-domiciled money market
funds managed by Invesco at 'AAAmmf' as follows:

-- Short-Term Investment Co. (Global Series) plc - Euro Liquidity Portfolio,
affirmed at 'AAAmmf'
-- Short-Term Investment Co. (Global Series) plc - Sterling Liquidity Portfolio,
affirmed at 'AAAmmf'
-- Short-Term Investment Co. (Global Series) plc - US Dollar Liquidity
Portfolio, affirmed at 'AAAmmf'

The main drivers for the affirmation are:
-- The portfolios' overall credit quality and diversification
-- Minimal exposure to interest rate and spread risks
-- Short maturity profile with high overnight and one-week liquidity, consistent
with funds' shareholders profile and concentration
-- The capabilities and resources of Invesco as asset manager

Consistent with Fitch's 'AAAmmf' money market fund rating criteria, the funds
seek to maintain a high credit quality by investing exclusively in short-term
securities rated at least 'F1' by Fitch or a comparable credit quality by other
global rating agencies. Also in line with Fitch's criteria, the funds limit
their exposures to individual issuers and counterparties. For the three funds at
mid-September, over 45% of issuers and counterparties carried the highest
short-term rating of 'F1+', or equivalent.

At the same date and more generally over the past year, the funds' Portfolio
Credit Factor (PCF), which is a risk-weighted measure of the funds' portfolio
assets accounting for the credit quality and maturity profile of the portfolio
securities, met Fitch's 'AAAmmf' rating criterion of 1.50 or less.

The funds seek to limit interest rate and spread risk consistent with Fitch's
ratings criteria for funds rated 'AAAmmf'. Each fund limits its weighted average
maturity to reset date (WAM) and weighted average life (WAL) to 60 days and 120
days, respectively. It also limits the maturity date of any single investment to
397 days or less. At mid-September 2012, the funds' WAL were 28, 46 and 57 days
for the euro, sterling and US dollar portfolios, respectively.

The funds seek to manage investor redemption risk through investment
restrictions that aim to maintain sufficient levels of daily and weekly
liquidity. In line with Fitch's rating criteria, the funds seek to maintain at
least 10% of their assets in securities maturing overnight or other qualifying
liquid assets such as government securities and at least 25% in securities
maturing within seven days or other qualified liquid assets. At mid-September,
overnight liquidity was at 45%, 34% and 21% for the euro, sterling and US dollar
portfolios, respectively.

The funds' objective is to offer capital preservation and liquidity, while
providing a competitive level of return. The funds pursue their investment
objective by investing in a diversified portfolio of short-term money market
instruments including time deposits, commercial papers, certificates of deposit,
corporate bonds and notes, repurchase agreements as well as ABCP, government and
government agency debt.

Invesco ('A-'/Stable), the funds' investment manager, is a leading independent
global investment management company. At end-June 2012, Invesco was managing
USD646.6bn of assets globally, of which about 11% were money market assets.
Fitch views Invesco's investment advisory capabilities, financial and resource
commitments, operational controls, corporate governance, and compliance
procedures as consistent with the 'AAAmmf' ratings assigned to the funds.

The euro, sterling and US dollar funds are sub-funds of the Dublin-domiciled
Short-Term Investments Company (Global Series) plc (STIC) umbrella fund with
segregated liability between sub-funds pursuant to the UCITS regulation. They
had total assets of EUR0.8bn, GBP0.5bn and USD4.8bn, respectively, at
mid-September 2012.

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's guidelines
for any key rating driver could cause Fitch to downgrade the ratings. For
additional information about Fitch's money market fund ratings guidelines,
please review the criteria referenced below.

To maintain the Money Market Fund ratings, Fitch seeks weekly fund and portfolio
holdings information from the funds' administrator - BNY Mellon Fund Services
(Ireland) Limited - and conducts surveillance checks against its ratings

Surveillance data for these funds is available at >

Additional information is available at The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.

The sources of information used to assess this rating were the public domain,
Invesco and BNY Mellon, the funds' custodian and administrator.

Applicable criteria, 'Global Money Market Fund Rating Criteria', dated 29 March
2012 are available at

Applicable Criteria and Related Research:
Global Money Market Fund Rating Criteria
Money Market Funds (MMF) Snapshot - End-August 2012
Sector Update: European Money Market Funds - March 2012
Liquidity in European Money Market Funds
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