State Treasurer Riley Moore today announced that S&P Global Ratings has once again given West Virginia’s Money Market and Government Money Market pools their highest possible rating.
The money market pools contain roughly $5.3 billion in short-term operating funds from various state and local government agencies. They provide the agencies a vehicle to invest their operating funds in interest-bearing accounts while preserving the liquidity needed for day-to-day operations.
“This news reaffirms our short-term cash pools are highly stable and protected from risk,” Treasurer Moore said. “Our Board of Treasury Investments staff does a great job overseeing our state and local government operating funds and protecting them from inflation. This ratings news demonstrates our state’s taxpayer funds continue to be well-managed.”
S&P Global Ratings last week informed the state’s Board of Treasury Investments it was reaffirming its “AAAm” rating on the West Virginia Money Market and Government Money Market pools. The AAAm rating is given to funds that demonstrate extremely strong capacity to maintain principal stability and to limit exposure to principal losses due to credit risk.
The West Virginia Money Market Pool is the state’s largest money market portfolio created to invest the majority of the state and local government operating funds. It contains roughly $5.1 billion in assets under management.
The risk factor is low and managed through numerous maturity restrictions, diversification, guidelines, and credit limits. Contributions and withdrawals are allowed daily, and income is distributed on a daily basis.
The West Virginia Government Money Market Pool is the lesser of the two funds, containing approximately $262 million. It was created to invest its monies in U.S. Treasury securities and U.S. Government Agency obligations.
Both portfolios are designed with the objective of providing participants with sufficient liquidity for cash operations while providing investment returns that are above inflation.
In addition to the ratings affirmation from S&P, the West Virginia Legislature also recently passed Senate Bill 297, which provides the Board of Treasury Investments with greater flexibility in its investment options, allowing it to give the state and local government agencies a better return on their cash while better protecting it from inflation.
That bill is awaiting Governor Jim Justice’s signature.