OREANDA-NEWS. Fitch Ratings has assigned ratings to Aberdeen Liquidity Fund (Lux) - Euro Fund and to Aberdeen Liquidity Fund (Lux) - Ultra Short Duration Sterling Fund, two sub-funds of the Aberdeen Liquidity Fund (Lux) SICAV.

Fitch also affirmed existing ratings on Aberdeen Luxembourg - and Ireland-domiciled liquidity funds, following the consolidation of Aberdeen Ireland funds into the Luxembourg funds. The ratings of the Ireland-domiciled funds have simultaneously been withdrawn.

Luxembourg-domiciled funds:

-- Aberdeen Liquidity Fund (Lux) - Ultra Short Duration Sterling Fund (USSF) - assigned 'AAA'/'V1' ratings

-- Aberdeen Liquidity Fund (Lux) - Euro Fund - assigned a 'AAAmmf' rating

-- Aberdeen Liquidity Fund (Lux) - Sterling Fund - affirmed at 'AAAmmf'

-- Aberdeen Liquidity Fund (Lux) - US Dollar Fund - affirmed at 'AAAmmf'

-- Aberdeen Liquidity Fund (Lux) - Canadian Dollar Fund - affirmed at 'AAAmmf'

Ireland-domiciled funds:

-- Aberdeen Sterling Investment Cash Fund (ICF) - affirmed at 'AAA'/'V1' and withdrawn

-- Aberdeen Global Liquidity Funds plc - Euro Liquidity Fund - affirmed at 'AAAmmf' and withdrawn

-- Aberdeen Global Liquidity Funds plc - Sterling Liquidity Fund - affirmed at 'AAAmmf' and withdrawn

KEY RATING DRIVERS

The main drivers for the AAAmmf ratings are:

-- The MMF portfolios' 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 profiles consistent with Fitch's MMF rating criteria

-- The capabilities and resources of the respective asset managers

The main drivers of the Fund Credit Quality Ratings and Fund Volatility Ratings are:

-- The high average credit quality of the funds' portfolio of assets as measured by their weighted average rating factor (WARF)

-- The distribution of asset ratings and investment guidelines limiting the minimum rating of assets and counterparties to 'A-' (or equivalent)

-- Portfolio diversification

-- The fund's low exposure to interest rates with duration maintained below one year

-- Contained spread duration exposure

Each Ireland-domiciled fund has been merged into its equivalent Luxembourg-domiciled fund through a transfer of assets and investors after market close on 15 July 2016. USSF did not hold any assets nor did it have any investors prior to the asset and investor transfer from ICF. The three Irish funds (Aberdeen Global Liquidity Funds plc - Euro Liquidity Fund and Sterling Liquidity Fund and Aberdeen Sterling Investment Cash Fund) are in the process of being closed, resulting in today's rating withdrawal. Accordingly, Fitch will no longer provide ratings or analytical coverage for these three funds.

MMFS' PORTFOLIO CREDIT QUALITY AND DIVERSIFICATION

Consistent with Fitch's MMF rating criteria, the reviewed Aberdeen money market funds seek to maintain high credit quality portfolios by investing exclusively in short-term securities rated at least 'F1' by Fitch or equivalent.

Generally, these MMFs limit their exposures to individual issuers at 10% of the fund's assets, with no more than 5% for those above seven days in tenor. Minor and temporary movements outside these parameters may result mainly from seasonal cash outflows. The funds also limit to 25% of total assets their individual repurchase agreement (as a means of investment) exposures to individual 'F1' or 'A' counterparties, provided the transactions are fully collateralised by high credit quality and liquid government securities. As of end-June 2016, the funds did not have repo transactions with lower-rated counterparties, although Fitch's criteria for 'AAAmmf'-rated funds provide for repos with counterparties rated 'A-'/'F2' or 'BBB+'/'F2' under specific collateral and diversification risk limits.

As of end-June 2016, the funds' Portfolio Credit Factor (PCF), which is a risk-weighted measure that considers the credit quality and maturity profile of the portfolio of securities, met Fitch's 'AAAmmf' rating criterion of 1.50 or less.

MMF MATURITY PROFILES

The reviewed MMFs seek to limit interest rate and spread risk by maintaining their weighted average maturity (WAM) and weighted average life (WAL) below 60 days and 120 days, respectively. The maturity date of single investments is kept below 397 days.

MMF LIQUIDITY PROFILES

The reviewed MMFs seek to maintain sufficient daily and weekly liquidity to meet investors' redemption requests. Specifically, MMFs invest at least 10% of total assets in securities offering daily liquidity and at least 30% of total assets in securities providing weekly liquidity, in line with Fitch's rating criteria. If liquidity levels fall below guidelines, Fitch expects liquidity to be restored in a timely manner.

USSF AND ICF ASSET CREDIT QUALITY

The weighted average credit quality of the ICF's and USSF's portfolio is high as indicated by their WARF, which was 0.36 at end-May 2016. The funds invest in a diversified portfolio of assets, typically comprising certificates of deposit, commercial papers, time deposits, fixed - and floating-rate government and corporate bonds, including covered bonds, and asset-backed securities (ABS). Underlying counterparties and securities must carry a minimum rating of 'A-'/'F1' (or equivalent) at time of purchase.

At end-May 2016, the portfolio was invested in 65 issuers, of which 33% were rated 'AAA' and the minimum credit quality of assets was 'A-'. ABS investments are in prime European - typically UK - RMBS and credit card ABS, which carry a rating of 'AAA'. The top five issuer exposures represented 22% of the portfolio. Under the funds' investment guidelines, concentration per issuer or counterparty is limited to no more than 5% of the funds' net assets, unless the exposure is to overnight deposits, which may account for up to 10%, or government debt.

USSF AND ICF PORTFOLIO SENSITIVITES TO MARKET RISKS

The funds have low exposure to interest rate and spread risks. Interest rate risk is managed within a maximum duration of one year and is typically maintained well below that limit. At end-May 2016, the funds had a WAM of 111 days and WAL (which measures sensitivity to spread risk) of 579 days with 63% of total assets maturing within 13 months. This resulted in a Market Risk Factor well within the 'V1' Fund Volatility Rating range.

Maturity of investments is limited to three and five years for fixed-rate and floating-rate instruments, respectively. The funds do not use leverage and are not exposed to currency risk as they only invest in sterling-denominated securities. Liquidity and spread risk stemming from ABS exposure is limited as the portfolio's allocation to these assets must not account for more than 15% of the portfolio's total assets (9% at end-May 2016).

FUNDS PROFILE AND OBJECTIVES

Aberdeen Liquidity Fund (Lux) - Euro Fund, Sterling Fund, US Dollar Fund, Canadian Dollar Fund and Ultra Short Duration Sterling Fund are sub-funds of Aberdeen Liquidity Fund (Lux) Luxembourg-domiciled UCITS SICAV.

Aberdeen Global Liquidity Funds plc - Euro and Sterling Liquidity Funds are sub-funds of the Ireland-domiciled Aberdeen Global Liquidity Funds plc UCITS umbrella fund. Aberdeen Sterling Investment Cash Fund ICF is a sub-fund of Ireland-domiciled Aberdeen Investment Cash OEIC plc UCITS umbrella fund.

Aberdeen MMFs seek to achieve a return in line with prevailing money market rates while preserving capital consistent with such rates and maintaining high liquidity. In the event of negative interest rates, Fitch considers that principal is preserved provided that the return to an investor is in line with the return on a relevant short-term money market interest rate benchmark. A fund's capacity to preserve principal is evaluated relative to the relevant short-term money market interest rate benchmark in the currency in which it invests.

INVESTMENT MANAGER

Fitch views the investment capabilities, resource commitment, operational controls, corporate governance, and compliance procedures of Aberdeen Asset Management as consistent with the ratings of the funds.

RATING SENSITIVITIES

The ratings may be sensitive to material changes in the credit quality, market risk, or, in the case of MMFs, the liquidity profiles of the funds. Temporary changes in key portfolio metrics outside of Fitch's criteria guidelines need not automatically result in rating changes, 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 drivers may lead to the rating being placed on Rating Watch Negative or downgraded.

SURVEILLANCE

Fitch receives regular fund holdings information and other pertinent fund data (twice a month for MMFs and monthly for the other funds) from the funds' administrators to conduct surveillance against ratings guidelines and maintain its fund ratings.