Standard & Poor's just withdrew its ratings on eight liquidating Reserve funds: International Liquidity, Interstate Tax Exempt, Primary, Treasury & Repo, U.S. Government, USD International Treasury & Repo, USD International Treasury and Yield Plus. According to S&P, the move was made at the behest of Reserve itself.

For the full story on the the death of the Reserve and its Primary Fund, see MFWire's timeline.

A spokeswoman for Reserve confirmed that the eight funds are no longer being rated, but she declined to comment further on the move.

The Reserve announced the planned liquidation of the Primary Fund, which famously broke the buck after Lehman Brothers went bankrupt, at the end of September (see MFWire, 9/30/2008). U.S. Government started on the liquidation path on October 1, and six of Reserve's funds followed suit eight days later (see MFWire, 10/2/2008 and 10/10/2008).

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Company Press Release

NEW YORK Jan. 6, 2009--Standard & Poor's Rating Services said today that it has withdrawn its fund ratings on eight funds at the request of the funds' investment adviser, Reserve Management Co. Inc.

The eight funds (see list below) were part of a Sept. 16, 2008, fund ratings action that lowered the principal stability fund ratings on two of The Reserve's funds - Primary Fund and the Reserve International Liquidity Fund Ltd. to 'Dm' and placed the principal stability and fund credit/volatility ratings on six other Reserve funds on CreditWatch with negative implications.

The CreditWatch actions for the six rated Reserve funds were based on the potential for material asset outflows and management's ability to meet redemptions in full. Prior to these rating withdrawals, we affirmed our principal stability and fund credit/volatility ratings on the six others funds.

Rating Actions To From

Reserve Funds - Primary Fund NR Dm

Reserve International Liquidity Fund Ltd.

NR Dm

Reserve Funds - Interstate Tax Exempt Fund

Am Am/Watch Neg

NR Am

Reserve Funds - Treasury & Repo Fund

AAAm AAAm/Watch Neg

NR AAAm

Reserve Funds - U.S. Government Fund

AAAm AAAm/Watch Neg

NR AAAm

Reserve USD International Treasury & Repo Fund Ltd.

AAAm AAAm/Watch Neg

NR AAAm

Reserve USD International Treasury Fund Ltd.

AAAm AAAm/Watch Neg

NR AAAm

Reserve Yield Plus Fund AAAf/S1+ AAAf/S1+/Watch

Neg

NR AAAf/S1+ 

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