Fitch Assigns New Rating to First American Government Obligations Fund

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has assigned an 'AAAmmf' rating to First American Government Obligations Fund, a registered 2a-7 money market fund managed by U.S. Bancorp Asset Management, Inc.

KEY RATING DRIVERS

The 'AAAmmf' rating assignment reflects:

--The fund's overall credit quality and diversification;

--Low exposure to interest rate and spread risks;

--Holdings of daily and weekly liquid assets consistent with shareholder profile and concentration;

--Maturity profile consistent with Fitch's 'AAAmmf' rating criteria;

--The capabilities and resources of U.S. Bancorp Asset Management, Inc.

PORTFOLIO CREDIT QUALITY/DIVERSIFICATION

The Fund seeks to maintain a diversified, high credit quality portfolio consistent with Fitch's criteria for 'AAAmmf' rated MMFs, by investing exclusively in first-tier rated securities with limited exposure to individual issuers.

The Fund's Portfolio Credit Factor (PCF) is in line with Fitch's 'AAAmmf' rating criteria of 1.50 or less. The PCF is a risk-weighted measure of a fund's portfolio assets that accounts for the credit quality and maturity profile of a fund's portfolio.

MATURITY PROFILE

The fund seeks to limit interest rate and spread risk by maintaining weighted average maturity (WAM) and weighted average life (WAL) below 60 days and 120 days, respectively. As at Feb. 29, 2016, the fund's WAM and WAL were 35 days and 97 days, respectively.

LIQUIDITY PROFILE

The fund seeks to maintain sufficient levels of daily and weekly liquidity to meet investors' flows. Specifically, the fund invests at least 10% of its total assets in securities offering daily liquidity, and at least 30% in securities maturing within seven days or other qualifying liquid assets.

FUND OBJECTIVE

The fund seeks to provide current income in line with prevailing money market rates, while aiming to preserve capital consistent with these rates and to maintain a high degree of liquidity.

As of Feb. 29, 2016, the Fund's assets under management totalled $18.5 billion.

INVESTMENT ADVISOR

The fund's investment adviser is U.S. Bancorp Asset Management, Inc., a wholly owned subsidiary of U.S. Bank National Association. As of Dec. 31, 2015, USBAM had approximately $56 billion in assets under management. Fitch views U.S. Bancorp Asset Management, Inc.'s investment advisory capabilities, financial and resource commitments, operational controls, corporate governance and compliance procedures as consistent with the 'AAAmmf' rating assigned to the funds.

RATING SENSITIVITES

The rating may be sensitive to material changes in the credit quality, market risk, and/or liquidity profiles of the fund. Temporary deviations from Fitch's criteria need not automatically result in a rating change, provided the fund manager is able to address them with credible near-term remedial actions. However, material adverse and continued deviations from Fitch's guidelines for any key rating driver may lead to the rating being placed on Rating Watch Negative or downgraded.

SURVEILLANCE

Fitch will receive fund holdings information and other pertinent fund data from the fund's administrator - U.S. Bancorp Asset Management, Inc. - to conduct surveillance against ratings guidelines and to maintain the MMF rating.

Additional information is available on www.fitchratings.com

Applicable Criteria

Global Money Market Fund Rating Criteria (pub. 10 Dec 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=874565

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1001777

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1001777

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE '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. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160331005961/en/

Fitch Ratings
Primary Analyst
Greg Fayvilevich
Senior Director
+1-212-908-9151
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Brian Knudsen
Associate Director
+1-646-582-4904
or
Committee Chairperson
Davie Rodriguez
Senior Director
+1-212-908-0386
or
Media Relations:
Hannah James, +1 646-582-4947
[email protected]

Source: Fitch Ratings

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