MPC Treasury : Money Broking, Foreign Exchange and Treasury Consultancy Projects, Deposits, Banks, Building Societies, Deposit Brokers

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Counterparties

It is the clients’ responsibility to ensure that any institution used complies with their current investment policy. We demand high standards from our banks in terms of security for our clients’ funds, consistently strong market rates and service levels as high as our own. As part of our service we can update counterparty ratings on a monthly basis. This process involves examination of credit ratings from Fitch, Standard & Poors, or Moody’s.

Credit ratings were initially designed to give holders of commercial paper objective guidance as the relative strengths of the issuers and establish a benchmark. Over time these procedures have been applied to banks and other financial institutions and so even unknown or little recognized institutions can be compared to their more widely known peers. If an institution is un-rated this may not necessarily reflect its credit quality. Since institutions apply, and pay, to be rated a number (especially smaller building societies) believe that they can attract the funding they require without going through the ratings process.

Credit Ratings by three leading Agencies:-

Short-Term - up to one year Long-Term - one to five years

Fitch

F1 Highest Credit Quality AAA Highest Credit Quality

F2 Good Credit Quality AA Good Credit Quality

F3 Fair Credit Quality A Fair Credit Quality

Moody’s

P1 Highest Credit Quality Aaa Superior Credit Quality

P2 Good Credit Quality Aa Strong Credit Quality

P3 Fair Credit Quality A Adequate Credit Quality

Standard & Poor’s

A1 Highest Credit Quality AAA Highest Credit Quality

A2 Good Credit Quality AA Satisfactory Credit Quality

A3 Fair Credit Quality A Adequate Credit Quality

SUMMARY

NB:

Although the majority of deals that we manage are less than one year, many investors still prefer to only consider Long Term Credit Ratings, whether it’s single A or AA etc., is down to their own criteria.

All the counterparty banks we deal with have Long Term Ratings, that we can provide for clients.