April 30 (The following statement was released by the rating agency)
U.S. prime money market fund (MMF) exposure to
Eurozone banks declined in March 2013, likely reflecting investor concerns over
recent events in Italy and Cyprus, according to Fitch Ratings.
As of end-March 2013, MMF allocations to Eurozone banks represented 13.2% of
assets under management within Fitch's sample, a decline of 19% on a dollar
basis relative to the end-February level of 16% of MMF assets. Despite this
recent decline, Fitch notes allocations to Eurozone banks have increased by over
70% since end-June 2012 when European Central Banks (ECB) actions led to
relative stabilization of market sentiment.
Canadian banks remained the largest single country exposure at 13.4% of assets,
a 9% increase since end-February. In aggregate, MMF allocations to Canadian,
Japanese and Australian banks represented approximately one-third of total
assets in Fitch's sample versus approximately 20% of assets as of end-May 2011.
Australian, Canadian and Japanese banks collectively represent 10 of the top-15
largest exposures of MMF assets in Fitch's sample, with just three European
institutions in the top-15.
The proportion of eurozone exposure in the form of repos, at slightly more than
20% of these banks' collective exposure, remains well below the levels of
roughly 40% of exposure experienced during the height of the crisis last summer.
The full report 'U.S. Money Fund Exposure and European Banks: Decline Amid
Eurozone Concerns' is available at 'www.fitchratings.com'.