Standard & Poor's has rated government investment pools (GIPs) since 1994. Credit Quality and Volatility ratings are assigned to address a GIPs’ credit quality, liquidity, risk parameters and management.
Credit Quality Ratings address the level of protection that the fund's portfolio holdings provide against losses from credit defaults.
They are derived from Standard & Poor’s historical default and transition studies and are based on an analysis of the fund's overall portfolio credit quality.
Rating categories range from 'AAAf' (highest level of protection against losses from credit defaults) to 'CCCf' (for funds that are extremely vulnerable to losses from credit defaults).
Volatility Ratings address the fund's sensitivity to changing market conditions
They are based on an analysis of a fund's investment strategy and portfolio level risk— including interest rate, credit, liquidity, concentration, call-and-option and currency risks.
Rating categories range from 'S1' (lowest volatility) to 'S6' (highest volatility).
