Standard & Poor's assigns Principal Stability Ratings to money market funds. These ratings address the ability of a money market fund to maintain principal value and limit exposure to loss.
Principal Stability Ratings focus on the following aspects of money market funds:
Investments and counterparties
Investments’ market-price exposure
Liquidity
Management Standard & Poor's money market fund ratings are designated with a subscript letter 'm' (for example, 'AAAm'). This distinguishes it from a Standard & Poor's debt rating, which usually is not subscripted, and which indicates a borrower's ability to repay principal and interest on a timely basis.
How are Principal Stability Ratings used?
Fund sponsors use the ratings for asset growth and retention and in the marketing of their funds
Fund investors use Principal Stability Ratings to assist in fund selection
