How familiar is CSAFE with Fitch Ratings?
CSAFE began using Fitch Ratings as the rating agency for the Colorado Core Fund since the Core Fund"s inception in 2018. CSAFE developed a solid rapport and understanding with Fitch Ratings and the team at Fitch tasked with analysis and rating.
Why is the Cash Fund rating changing to Fitch Ratings?
Fitch Ratings has shown a strong ability to rate Local Government Investment Pools (LGIPs) through its rating of the Colorado Core Fund as well as in Fitch"s growth in the LGIP segment throughout the United States. CSAFE"s portfolio management team and Board of Trustees determined Fitch to be highly capable of providing a rating for the Cash Fund that indicates the fund"s stability, safety and risk management.
What areas will Fitch provide specific guidance or monitoring that may be different than the prior agency?
Fitch will be able to monitor and rate the portfolio without demerit of securities in the portfolio based on what rating agency is used for each specific security instrument. Fitch utilizes a complete view of bank deposits that comply with Public Deposit Protection Act (PDPA) statues and requirements.
Will the CSAFE Cash Portfolio change or take on more risk after this change?
The Cash Fund portfolio investing style and practice will not change based on the change of rating agency. Fitch will offer strong consideration to all securities in the portfolio without bias toward securities that use Fitch for their ratings.
What is the history of Fitch Ratings?
Fitch Ratings is a leading provider of credit ratings, commentary, and research. For over 100 years Fitch Ratings has been building and creating value for global markets. Fitch operates across 38 global offices. The firm"s 1,500+ analysts are prominent credit and risk experts covering over 20,000 rated entities across more than 190 countries.
Fitch has assigned ratings to Local Government Investment Pools for more than 25 years. The firm is a market leader in the LGIP space, and provides a variety of thought leadership, market commentary, and research across the sector.