Moody's Launches First Real Estate Fund Ratings Worldwide; Boosts Transparency in Global Real Estate Markets.Business, Finance, Real Estate & Insurance Editors NEW YORK--(BUSINESS WIRE)--April 2, 2002 Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. has announced the global launch of a new rating system for private and public real estate funds. This new system, called Moody's Real Estate Fund Ratings, is designed for commingled open-ended and closed-ended funds, unit trusts, partnerships, joint ventures and similar funds that invest in real property and/or mortgages on real property. The product is designed to boost transparency (1) The quality of being able to see through a material. The terms transparency and translucency are often used synonymously; however, transparent would technically mean "seeing through clear glass," while translucent would mean "seeing through frosted glass." See alpha blending. and to allow for increased investor confidence in the industry. "We are pleased to provide this new rating system to the global real estate community," says John J. Kriz, managing director of real estate finance at Moody's. "The market's excellent reception has clearly delivered the message that Moody's Real Estate Fund Ratings will be important to fulfilling the needs of investors, consultants and investment managers for an independent, transparent and respected rating system for property funds' asset quality and management quality." The ratings will also assist investors and consultants in meeting their fiduciary fiduciary (fĭd  `shēĕ'rē), in law, a person who is obliged to discharge faithfully a responsibility of trust toward another. responsibilities. Moody's is the first rating agency to provide ratings to real estate funds, following its assignment of ratings to seven German property funds this March. Moody's uses its well-developed interdisciplinary in·ter·dis·ci·pli·nar·y adj. Of, relating to, or involving two or more academic disciplines that are usually considered distinct. interdisciplinary Adjective analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. framework in determining Real Estate Fund Quality Ratings. "Moody's unique combination of global expertise in evaluating fund managers, and knowledge of international real estate markets, provide the skills crucial to derive meaningful opinions for real estate fund investors, pension fund consultants and fund managers," says Arlene Isaacs-Lowe, senior vice president of real estate finance at Moody's. "Moody's international brand recognition and reputation will enhance the comparability and transparency of these investment structures across global markets." Moody's was recently appointed the exclusive rating agency for the evaluation of German open-ended real estate funds. This prestigious appointment was made jointly by the Association of German Investment and Asset Management Companies (BVI Bundesverband Deutscher Investment- und Vermogensverwaltungs-Gesellschaften e.V.) and the German open-ended real estate fund managers, based on their view that the assignment of Moody's ratings for these funds will provide additional, crucial transparency for the investment community. The German open-ended real estate fund market exceeded EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 55 billion in 2001, as investors have favored German funds as a safe haven 1. Designated area(s) to which noncombatants of the United States Government's responsibility and commercial vehicles and materiel may be evacuated during a domestic or other valid emergency. 2. from volatile equity markets. The focus on property funds is currently at an all-time high as a result of turbulent equity market conditions worldwide. "We are honoured that our Real Estate Fund ratings have been chosen by the German fund community," says David Vriesenga, Moody's European-based representative director in the rating agency's mutual fund group. Moody's Real Estate Fund Rating is comprised of two components - Management Quality and Portfolio Investment Quality. The Management Quality Rating assesses the overall quality of the organization, management abilities, capacity of the firm's infrastructure, operational procedures The detailed methods by which headquarters and units carry out their operational tasks. , risk management and controls, financial wherewithal where·with·al n. The necessary means, especially financial means: didn't have the wherewithal to survive an economic downturn. conj. Wherewith. pron. Wherewith. , and quality of client servicing. The Investment Quality Rating assesses the impact of macro- macro- - Prefix large. Opposite of micro-. In the mainstream and among other technical cultures (for example, medical people) this competes with the prefix mega-, but hackers tend to restrict the latter to quantification. and micro-economic trends on real estate fundamentals, asset quality, portfolio quality, fund liquidity and performance. Unlike traditional ratings, Moody's Real Estate Fund ratings do not address a fund's ability to repay a fixed obligation, or to satisfy contractual financial obligations. Moody's Real Estate Fund Rating definitions are as follows: Management Quality Component AaaMQ Real Estate Funds rated AaaMQ are judged to be managed in an exceptional manner. This rating indicates an exceptionally strong management and control environment. AaMQ Real Estate Funds rated AaMQ are judged to be managed in an excellent manner. This rating indicates an excellent management and control environment. AMQ AMQ Association Minière du Québec (Québec Mining Association - Canada) AMQ Ambon, Indonesia - Pattimura (Airport Code) AMQ Analog Multiplexer Quantitizer Real Estate Funds rated AMQ are judged to be managed in a good manner. This rating indicates a good management and control environment. BaaMQ Real Estate Funds rated BaaMQ are judged to be managed in an adequate manner. This rating indicates an adequate management and control environment. BaMQ Real Estate Funds rated BaMQ are judged to be managed in a questionable manner. This rating indicates a questionable management and control environment. BMQ BMQ Basic Military Qualification (Canadian military) BMQ Beliefs about Medicines Questionnaire BMQ Branford Marsalis Quartet (jazz group) Real Estate Funds rated BMQ are judged to be managed in a poor manner. This rating indicates a poor management and control environment. AaMQ through BMQ may be modified by a "1", "2" or "3" to indicate positioning within each rating category. Portfolio Investment Quality Component AaaIQ Real Estate Portfolios rated AaaIQ are judged to have exceptional investment quality. AaIQ Real Estate Portfolios rated AaIQ are judged to have excellent investment quality. AIQ AIQ Analytical Instrument Qualification AIQ Available in Quarters AIQ Action Internet Québec AIQ Allowance Item Quantity AIQ Analyst Interest Queue AIQ Algebraic Integer Quantization Real Estate Portfolios rated AIQ are judged to have good investment quality. BaaIQ Real Estate Portfolios rated BaaIQ are judged to have adequate investment quality. BaIQ Real Estate Portfolios rated BaIQ are judged to have questionable quality. BIQ BIQ Biarritz, France - Parme (Airport Code) BIQ Business Intelligence Quotient BIQ Basic Infantry Qualification (Canadian Forces) BIQ Back in Quarters (emergency response) Real Estate Portfolios rated BIQ are judged to have poor quality. AaIQ through BIQ may be modified by a "1", "2" or "3" to indicate positioning within each rating category. For additional information, we encourage you to call John J. Kriz (+1 212/553-7134) or Arlene Isaacs-Lowe (+1 212/553-7841) in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , or David Vriesenga (+44-207-772-5403) in London. |
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