Two BMCI asset management funds have received Fitch ratings that mirror morocco’s BB+ rating
Rabat – Two BMCI asset management funds that focus on Moroccan securities have received a BB+ rating that mirrors Morocco’s rating. A BB+ rating refers to a “speculative” rating based on the “elevated vulnerability to default risk.”
BMCI Treso Plus and InstiObligations Etat International Fund are two asset management funds owned by BMCI, which is a subsidiary of French multinational BNP Paribas. The two funds deal primarily in Morocco’s government securities and reverse repurchase agreements.
Because of their focus on Morocco, Fitch ratings have issued a BB+ rating that mirror’s Morocco’s sovereign credit rating (BB+/Stable/B). BMCI Treso Plus received a rating of BB+f’/’S2 while InstiObligations Etat International Fund was rated as BB+f’/’S4.
The two funds received the rating as they are “primarily exposed to Moroccan sovereign bonds,” Fitch announced in its ratings report.
BMCI Treso Plus received a slightly better rating compared to InstiObligations Etat International Fund as the fund deals in securities with an investment horizon of a maximum of six months. This means the fund’s securities are considered less risky as they are less vulnerable to interest-rate hikes.