Despite the repercussions from the blowup of the Reserve Funds Primary Fund, money market funds still have not properly addressed liquidity and credit quality issues, the ratings agencies believe, and as a result they might strengthen their standards, The Wall Street Journal reports.
Fitch Ratings is specifically looking at whether prime money market funds can retain triple-A ratings. Right now, sources at the company say, the funds are supported by the government through the Commercial Paper Funding Facility and the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility. Once the programs end, on Sept. 18, the rating agency fears the funds could be as susceptible to a run as before.
Meanwhile, the Securities and Exchange Commission and the Presidents Working Group on Financial Markets are considering changes to money funds.