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Report Examines Trends And Performance Of Rated Enhanced Cash Funds
Primary Credit Analyst:
Jaime Gitler, New York;
jaime_gitler@standardandpoors.com
Secondary Credit Analysts:
Joel C Friedman, New York (1) 212-438-5043;
joel_friedman@standardandpoors.com
Ruth Shaw, New York (1) 212-438-1410;
ruth_shaw@standardandpoors.com
Media Contact:
Marc Eiger, New York (1) 212-438-1280;
marc_eiger@standardandpoors.com
Publication date: 10-Dec-07, 12:32:17 EST
Reprinted from RatingsDirect 


NEW YORK (Standard & Poor's) Dec. 10, 2007--Standard & Poor's Ratings Services 
has conducted a review of its rated enhanced cash funds. The results are 
available in a report released today titled, "Rated Enhanced Cash Funds: 
Trends And Performance In A Volatile Market."
     As anticipated, we found that the monthly returns and net asset values 
(NAVs) of funds holding particular asset types decreased. Illiquidity combined 
with diminishing or negative returns caused sharp declines in assets under 
management for some funds. Many investors, nervous about contagion risk, opted 
for the safety of money market funds. The flight to quality has been so severe 
that several funds are now effectively dormant, and some have requested rating 
withdrawals.
      "Many shareholders, wary of exposure to anything but treasury and 
government securities, redeemed their money at the height of the crisis. This 
exodus put more downward selling pressure on securities and some funds were 
forced to sell, causing further stress on their NAVs. Funds with diverse and 
informed shareholders did not have to sell into the troubled market," said 
Standard & Poor's credit analyst Jaime Gitler.

     The report is available to subscribers of RatingsDirect, the real-time 
Web-based source for Standard & Poor's credit ratings, research, and risk 
analysis, at www.ratingsdirect.com. If you are not a RatingsDirect subscriber, 
you may purchase a copy of the report by calling (1) 212-438-9823 or sending 
an e-mail to research_request@standardandpoors.com. Ratings information can 
also be found on Standard & Poor's public Web site at 
www.standardandpoors.com; under Credit Ratings in the left navigation bar, 
select Find a Rating, then Credit Ratings Search. Members of the media may 
request a copy of this report by contacting the media representative provided.

Analytic services provided by Standard & Poor's Ratings Services (Ratings Services) are the result of separate activities designed to preserve the independence and objectivity of ratings opinions. The credit ratings and observations contained herein are solely statements of opinion and not statements of fact or recommendations to purchase, hold, or sell any securities or make any other investment decisions. Accordingly, any user of the information contained herein should not rely on any credit rating or other opinion contained herein in making any investment decision. Ratings are based on information received by Ratings Services. Other divisions of Standard & Poor's may have information that is not available to Ratings Services. Standard & Poor's has established policies and procedures to maintain the confidentiality of non-public information received during the ratings process.

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