iShares J.P. Morgan EM Local Currency Bond ETF FCQR Lowered To 'BB+f'; FVR Affirmed At 'S5'

AUSTIN (S&P Global Ratings) Aug. 4, 2022--S&P Global Ratings today said it lowered its fund credit quality rating (FCQR) on the iShares J.P. Morgan EM Local Currency Bond ETF (LEMB) to 'BB+f' from 'BBB-f' and affirmed the S5 fund volatility rating (FVR). The 'BB+f' FCQR indicates that the credit quality of the fund's portfolio exposure is weak. The rating action reflects the ETF's increased exposure to sovereign issuers rated below investment grade. LEMB tracks the investment results of an index composed of local currency denominated, emerging market sovereign bonds. The benchmark index provider removed Russia from eligible countries in the underlying index and as a result the ETF rebalanced its portfolio out of Russian sovereign debt and increased allocation to

...August 4, 2022 AUSTIN (S&P Global Ratings) Aug. 4, 2022--S&P Global Ratings today said it lowered its fund credit quality rating (FCQR) on the iShares J.P. Morgan EM Local Currency Bond ETF (LEMB) to '##+f' from '###-f' and affirmed the ## fund volatility rating (FVR). The '##+f' FCQR indicates that the credit quality of the fund's portfolio exposure is weak. The rating action reflects the ETF's increased exposure to sovereign issuers rated below investment grade. LEMB tracks the investment results of an index composed of local currency denominated, emerging market sovereign bonds. The benchmark index provider removed Russia from eligible countries in the underlying index and as a result the ETF rebalanced its portfolio out of Russian sovereign debt and increased allocation to lower rated countries like Egypt (B/Stable). As a result, the weighted average credit quality of LEMB has fallen within the '##+f' range. The fund continues to be managed seeking to replicate as closely as possible...

Ratings Action