Government actions to assist the ABCP market including the Asset-Backed Commercial Paper (ABCP) Money Market Mutual Mutual Fund Liquidity Facility (AMLF) and the Money Market Investor Funding Facility (MMIFF) are helping to stabilize ABCP and other short-term instruments, Fitch Ratings reports.
However, ABCP credit ratings are not improving.
Fitch released its findings in the 2009 Outlook for Global ABCP, in which the ratings agency looked at the effects of the two facilities aimed at money funds, as well as the Commercial Paper Funding Facility (CPFF) and the Straight-A Funding programs.
Without these programs, Fitch said, many institutions would not have been able to continue normal short-term funding operations. As such, Fitch expects the government to continue these programs for as long as needed