KBRA Assigns AAAkf Rating to Georgia Fund 1 Plus

NEW YORK--()--Kroll Bond Rating Agency (KBRA) assigns an AAAkf Fund Rating to the State of Georgia Fund 1 Plus (GF1 Plus) investment fund. The AAAkf rating reflects the Fund’s Primary Quantitative Rating (PQR) as measured by the KBRA Funds Credit Quality Rating Matrix, which is based on the credit quality of the underlying instruments and risks that comprise the portfolio. Additionally, the fund rating is influenced by the results of the qualitative assessment of the investment program’s Administrator, Georgia’s Office of the State Treasurer (OST). The qualitative shadow rating (QSR) for the OST was found to be strong.

Pursuant to an investment policy adopted by the State Depository Board, the OST shall invest funds through the state treasurer. The state treasurer shall invest all funds with the degree of judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering first the probable safety of their capital and then the probable income to be derived. GF1 Plus is managed as a low-risk rates and credit portfolio, employing an external investment manager with expertise in managing fixed-income portfolios in the corporate credit markets. Target allocation is 70% of Fund market value to the internally-managed rates portfolio and 30% to the externally-managed credit portfolio, with a tolerance range of +/- 10%. GF1 Plus is designed for investors seeking returns higher than those of stable NAV LGIPs and exposure to corporate credit markets. The portfolio’s performance objective is to meet or exceed the Georgia Fund 1 yield on a rolling four, twelve, and twenty-quarter basis.

Georgia Fund 1 provides a primary source of liquidity to investors, while Georgia Fund 1 Plus aims to provide a better return profile for its investors who do not anticipate requiring return of their investment within the next six months. Accordingly, the weighted average maturity (WAM) of GF1 Plus will be managed to fall within a range of 15-90 days.

The OST and State Depository Board maintain overall oversight and responsibility for administering the Fund’s investment program.

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KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus, is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Analytical:
Barry Weiss, CFA, Senior Director
(646) 731-2475
bweiss@kbra.com

Kristine Pfeilsticker, Director
(646) 731-2449
kpfeilsticker@kbra.com

Peter Gargiulo, Director
(646) 731-3341
pgargiulo@kbra.com

Jared Hong, Analyst
(646) 731-3311
jhong@kbra.com

Contacts

Analytical:
Barry Weiss, CFA, Senior Director
(646) 731-2475
bweiss@kbra.com

Kristine Pfeilsticker, Director
(646) 731-2449
kpfeilsticker@kbra.com

Peter Gargiulo, Director
(646) 731-3341
pgargiulo@kbra.com

Jared Hong, Analyst
(646) 731-3311
jhong@kbra.com