Fitch Ratings affirms the following ratings assigned to three money market funds investing in the U.S. Treasury and government agency securities managed by Invesco AIM Advisors, Inc. (Invesco AIM):
--AIM Short-Term Investment Company (STIC) Treasury Portfolio at 'AAA/V1+';
--AIM Short-Term Investment Company (STIC) Government & Agency Portfolio at 'AAA/V1+';
--AIM Short-Term Investment Company (STIC) Government TaxAdvantage Portfolio at 'AAA/V1+'.
The affirmations are a result of Fitch's annual review of the funds. As of Jan. 14, 2009, the funds had approximately $37.6 billion in total assets under management.
All three funds seek to achieve a similar objective of providing as high a level of current income as is consistent with liquidity and stability of principal. STIC Treasury Portfolio invests in direct obligations of the U.S. Treasury and repurchase agreements backed by Treasury obligations. STIC Government & Agency Portfolio invests direct obligations of the U.S. Treasury and other securities issued or guaranteed as to principal and interest by the U.S. government or by its agencies or instrumentalities and repurchase agreements secured by such obligations. STIC Government TaxAdvantage Portfolio invests in direct obligations of the U.S. Treasury and in U.S. government agency securities with maturities of 397 days or less, with the intention of providing shareholders with dividends exempt from state and local income taxes in some jurisdictions.
Fitch's affirmations are based on the high credit quality of the funds' assets and the capabilities of Invesco AIM as investment advisor. All three funds take only minimum interest rate risk as evidenced by maximum weighted-average maturity limits of 60 days. The portfolios' cash outflows are closely monitored and structured to meet anticipated daily redemptions. Liquidity is further supported by investing in overnight repurchase agreements for eligible portfolios. In order to minimize counterparty risk, STIC Treasury Portfolio and STIC Government & Agency Portfolio enter into repurchase agreements with counterparties rated at least 'A/F1' by Fitch or of a comparable credit quality by other global rating agencies. The portfolios participate in the U.S. Department of Treasury's Temporary Guarantee Program for Money Market Funds. Under the term of the program, only shareholders on records as of the close of business as of Sept. 19, 2008 may benefit from such guarantee to receive $1.00 for each share held in a respective portfolio on that day.
Invesco AIM is a subsidiary of Invesco Holding Company Limited (rated 'BBB+' by Fitch) which is among the world's largest independent investment managers with assets under management of $134.2 billion as of Dec. 31, 2008. The firm manages assets on behalf of institutions and individuals worldwide through a variety of equity, fixed income, cash management and alternative investment products. Fitch views Invesco AIM's investment advisory capabilities, resource commitment, operational controls, corporate governance, and compliance procedures as consistent with the ratings assigned to the portfolio.
Fitch will publish an updated fund credit profiles for the above portfolios on its website www.fitchratings.com in the near future.
Fitch's rating definitions and the terms of use 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 are also available from the 'Code of Conduct' section of this site.
Contacts:
Fitch Ratings, New York
Viktoria Baklanova, CFA, 212-908-9162
Nathan
Flanders, 212-908-0827
or
Media Relations:
Tyrene
Frederick-Mack, 212-908-0540
Email: tyrene.frederick-mack@fitchratings.com