Money market funds pull out of Greece-Fitch

NEW YORK, May 17 (BestGrowthStock) – Money market funds have got
rid of all their investments in Greece and cut exposure to
Spain and Portugal on concerns about high sovereign debt levels
in the euro zone countries, Fitch Ratings said on Monday.

Money market funds are a major group of investors which
banks and other companies rely on to raise cash.

The funds’ move to sell assets in Greece, Spain and
Portugal has exerted upward pressure on euro zone borrowing
costs and put further downward pressure on the euro, which hit
a 4-year low against the dollar on Monday.

Between the end of 2009 and April 2010, total exposure to
Greece of money market funds rated by Fitch “was eliminated
entirely,” the debt rating service said in a statement.

These funds’ exposure to Portugal and Spain fell 27 percent
to $25.8 billion from $35.6 billion during first four months of
2010, it said.

Their average exposure to debt issued or guaranteed by
Spanish and Portuguese companies and agencies declined to 4.8
percent of total investments in April from 6 percent at the end
of last year.

Moreover, the average maturity of such exposures shortened
to 62 days from 74 days, Fitch said. See [ID:nFIT447067]

Fitch rates 73 U.S. and European money market funds with a
combined $782 billion in assets as of April.

Investing Research

(Reporting by Richard Leong; Editing by Andrew Hay)

Money market funds pull out of Greece-Fitch