Fitch assigns NDB Wealth Money Fund first-time ‘AA+f(lka)’ and ‘S2(lka)’

EconomyNext and Lanka Business Online report that Fitch Ratings assigned NDB Wealth Money Fund its first National Fund Credit Quality Rating of AA+f(lka) and National Fund Market Risk Sensitivity Rating of S2(lka).

EconomyNext and Lanka Business Online say Fitch described the credit quality of the fund’s underlying assets as high and its sensitivity to interest-rate and spread risk as low. They report that the credit-quality assessment reflects the fund’s actual and prospective portfolio quality.

EconomyNext and Lanka Business Online report that the fund primarily invests in Sri Lankan government securities, repurchase agreements backed by those securities, and time deposits with financial institutions. Its weighted-average rating factor, which reflects holdings’ credit ratings and remaining maturities weighted by market value, was 0.15 at the end of August 2026. Both outlets say Fitch placed that figure within the range associated with its AAAf(lka) category, 0.0 to 0.3.

EconomyNext and Lanka Business Online say Fitch assigned the lower AA+f(lka) credit-quality rating because the fund’s guidelines allow it to invest in money-market instruments beyond government securities, including bank deposits, which could reduce the portfolio’s overall credit quality. Both outlets also report that Fitch’s market-risk assessment accounts for repos with non-investment-grade counterparties, where the maturity of collateral can increase calculated exposure.

EconomyNext and Lanka Business Online report that Fitch uses collateral ratings and maturities when assessing repos with counterparties it does not rate; for investment-grade counterparties rated below their collateral, Fitch uses the collateral rating and the repo’s original term. The reports provide no further steps or timetable.