NEW YORK -- Standard & Poor's Ratings Group said it has developed a way to rate the unsecured creditworthiness of open-end mutual funds and closed-end investment companies registered under the Investment Company Act of 1940.

S&P said it will be able to assign debt or financial program ratings to such funds, with the ratings reflecting the likelihood of a fund's defaulting on an obligation, such as a debt or counterparty obligation under a derivative instrument. The methodology will apply to all types of registered funds, including equity, bond, and money market funds.

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