Credit Quality Rating
In 1996, we pioneered the concept of credit quality ratings for the money market and debt funds in the domestic market. Our Credit Quality Ratings are an opinion on the expected default probability of securities in the fund portfolio. These ratings are assigned only to funds that invest entirely or almost entirely in debt.
The rating reflects the level of protection that a fund's portfolio holdings provide against losses from credit defaults. To maintain the rating at all times, the fund has to maintain a certain level of credit quality of the portfolio.
Long-term ratings are assigned to open-ended funds (funds that do not have a defined maturity date) and to funds that have an original contracted maturity of more than one year. Short-term ratings are assigned to funds that have an original contracted maturity of one year or less.