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Credit ratings

Fitch Ratings Affirms BMCI Treso Plus and InstiObligations Etat Fund Ratings, Then Withdraws Coverage

Strategic Insights

— 1 min read

Fitch Ratings has affirmed the fund credit quality ratings and market risk sensitivity ratings of BMCI Treso Plus and InstiObligations Etat International at 'BB+f'/'S2' and 'BB+f'/'S4', respectively. The ratings reflect the funds' credit quality being in line with Morocco's sovereign rating (BB+/Stable/B) and their exposure to interest-rate and spread risks. Fitch has subsequently withdrawn the ratings due to commercial reasons, stating it will no longer provide rating or analytical coverage on InstiObligations Etat and BMCI Treso Plus.

Key Takeaways:

  • The ratings of BMCI Treso Plus and InstiObligations Etat International are primarily driven by the funds' exposure to Morocco's sovereign credit quality and their structural high exposure to government bonds.
  • As of mid-April 2025, 100% of BMCI Treso Plus's portfolio was invested directly in government bonds, with a market risk factor (MRF) of 1.3 indicating low sensitivity to interest-rate and spread risks.
  • InstiObligations Etat's 'S4' Fund Market Risk Sensitivity Rating is driven by its moderate to high sensitivity to interest-rate and spread risks, as measured by a MRF of 6.9 as of mid-April 2025.
  • CIH Capital Management, the investment manager, has been viewed as suitably qualified, competent, and capable of managing the funds in line with their ratings, with sufficient operational resources and expertise.
  • As of mid-May 2025, CIH Capital Management had MAD20.2 billion assets under management and 17 employees, including four portfolio managers.

Statistics:

  • 100% of BMCI Treso Plus's portfolio was invested directly in government bonds as of mid-April 2025.
  • BMCI Treso Plus's market risk factor (MRF) was 1.3 as of mid-April 2025.
  • InstiObligations Etat's MRF was 6.9 as of mid-April 2025.
  • As of mid-May 2025, CIH Capital Management had MAD20.2 billion assets under management.

Sources:

  • Fitch Ratings, "_Publication Date Not Available_", (Source Ref.#)
  • Fitch Ratings, "Explanation for Withdrawal of Credit Rating Services" (Source Ref.#)

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