Moody's Ratings (Moody's) has today affirmed the foreign-currency long-term issuer rating of The Currency Exchange Fund NV (TCX, or the Fund) at Aa3. The outlook remains stable.
The affirmation of TCX's Aa3 rating reflects the Fund's solid levels of capital which keeps leverage moderate as TCX continues to grow its portfolio. Moreover, wide diversification across currencies and regions mitigates risks from weak asset quality. The rating affirmation also reflects TCX's strong liquidity buffers which mitigate risks from margin calls on the swap portfolio. The very strong member support for TCX from highly rated shareholders, demonstrated through a track record of capital injections, is also a factor supporting the affirmation of the Aa3 rating.
The stable outlook reflects our view that TCX will maintain solid capital and liquidity buffers, while continuing to grow its portfolio moderately over the medium term. Interest from existing and potential new shareholders in its products is expected to remain strong. TCX aims to broaden its transformational impact through support to development finance institutions, with a particular focus on climate adaptation, sustainable infrastructure and sovereigns.
Read more in the press release.