S&P Assigns 'AAAf' Credit Rtg to TexasTERM, LGIP.Business Editors NEW YORK--(BUSINESS WIRE)--Standard & Poor's Sept. 25, 2000-- Standard & Poor's Monday assigned its triple-'Af' credit rating to the first series (Series A) of TexasTERM, Local Government Investment Pool (the Pool). The Pool is managed by Public Financial Management Inc. (PFM) and will be offered to municipalities, counties, school districts, special districts, and other governmental entities in the state of Texas. PFM plans to offer Series A on Sept. 25, 2000 and, in the future, plans to offer additional series of TexasTERM to provide investors with fixed-term investments with maturities between 60 and 365 days. The series projected dividend rate is determined at the time when the shares are purchased. TexasTERM seeks to return all invested principal on the termination date termination date, n See expiration date. . The termination date for Series A is set for Dec. 31, 2001. TexasTERM seeks to attain as high a level of current income as is consistent with the preservation of capital Preservation of Capital An investment strategy whose primary goal is to prevent the loss of an investment's total value. Notes: For investors using the capital preservation strategy to achieve their goal, they must ensure their portfolio is producing a return that is at and liquidity. The Pool invests in securities with the highest short_ and long-term ratings. The Pool's eligible investments include obligations of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. government and its agencies and instrumentalities, fully collateralized direct repurchase Direct Repurchase A company's plan to buy back its own shares from the marketplace, thereby reducing the number of outstanding shares. Notes: Generally speaking, this is an indication that the company's management thinks the shares are undervalued. agreements, commercial paper, certificates of deposit, and no-load money market funds. PFM, which has about $10 billion in assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. , acts as the Pool's administrator, investment adviser, and transfer agent. First Union National Bank is the custodian bailee (custodian) n. a person with whom some article is left, usually pursuant to a contract (called a "contract of bailment"), who is responsible for the safe return of the article to the owner when the contract is fulfilled. for the Pool. Standard and Poor's Noun 1. Standard and Poor's - a broadly based stock market index Standard and Poor's Index Fund Services' credit-quality rating scale ranges from triple-'Af' (extremely strong) to triple-'Cf' (extremely vulnerable). The triple-'Af' rating is based on Standard and Poor's analysis of the Pool's eligible investments. The series' rating reflects the highest level of protection against losses from credit defaults. Standard and Poor's monitors the Pool's asset composition and returns on a monthly basis to ensure accurate and consistent ratings. --CreditWire |
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