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Standard and Poor's Reaffirms AAA Money Mk Fund Ratings Over Cheyne. S&P issued a release last night entitled "No Rating Actions On Principal Stability Rated Funds Exposed to Cheyne and Rhinebridge". The ratings agency also put King County Investment Pool's AAAf rating on "CreditWatch Negative" due to distressed Cheyne Finance LLC (1.2%), Rhinebridge LLC (1.2%) and Mainsail II LLC (1.4%) holdings. S&P lowered its ratings on CP, MTNs, and capital notes issued by Cheyne to 'D' (default) on Oct. 19, but the NRSRO hasn't downgraded any funds due to the "potential sale of the entire investment portfolio to The Royal Bank of Scotland plc. The strength of the underlying collateral "has also forestalled any ratings actions on our part" says an S&P release. S&P currently rates nearly 500 money funds, and says approximately a dozen with half a dozen managers have limited exposure to Cheyne (none have Rhinebridge) and are expected to receive full payment.
