Fitch Rates Michigan Cooperative Liquid Asset Securities System 'AAA/V1+'.NEW YORK -- Michigan Cooperative Liquid Asset Securities System (MI CLASS) is assigned a local government investment pool rating of 'AAA/V1+' by Fitch Ratings. The rating reflects the pool's high credit quality, conservative investment policies and strong ability to provide shareholders with constant $1.00 per share valuation. Portfolio valuation reports are submitted to Fitch weekly. Established in 1991, the MI CLASS program was created for Michigan public sector entities to pool their funds for investment purposes. MI CLASS is managed and administrated by MBIA MBIA Montana Building Industry Association MBIA Municipal Bond Insurance Association MBIA Michigan Boating Industries Association MBIA Municipal Bond Investors Assurance MBIA Massachusetts Brain Injury Association MBIA Maryland Business Incubation Association Municipal Investors Service Corporation (MBIA-MISC) on a nondiscretionary basis following approved investment management policies by the program's Board of Directors. Additionally, the investment policies must be in accordance with the State of Michigan's statues for the investment of surplus funds. The objectives of the MI CLASS program are safety, liquidity, convenience and competitive rates. MBIA-MISC pursues these objectives by investing in high quality, short-term money market securities. Allowable investments, as stated in the investment policy, are U.S. Treasury securities U.S. Treasury securities Interest-bearing obligations if the U.S. government issued by the U.S. Department of the Treasury as a means of borrowing money to meet government expenditures not covered by tax revenues. , federal agency obligations of the U.S. government, prime Banker's Acceptances, money market funds, and highly-rated commercial paper. Fitch requires a weighted average maturity (WAM WAM - Intermediate language for compiled Prolog, used by the Warren Abstract Machine. "An Abstract Prolog Instruction Set", D.H.D. Warren, TR 309, SRI 1983. ) of all assets on a dollar-weighted basis to be 60 days or less for an 'AAA/V1+' rated pool. Fitch assigns the 'V1+' volatility rating to distinguish local government investment pools and money market funds that will maintain stable principal values from bond funds that experience fluctuating net asset values but nevertheless carry 'AAA' credit ratings and 'V1' volatility ratings. Bond funds are rated on a scale from 'V1' (least volatile, but still displaying NAV See navigation system and navigation bar. variability) to 'V10' (most volatile). MBIA-MISC is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of MBIA Asset Management LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control . MBIA Asset Management Group has $55 billion under management in both advisory and structured assets as of June 1, 2006. The MI CLASS program has used MBIA-MISC as the program administrator and investment advisor since 1991. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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