Specified and Non-Specified Investments SPECIFIED INVESTMENTS: (All such investments will be sterling denominated, with maturities up to maximum of 1 year, meeting the minimum rating criteria where ‘high’ applicable) Minimum ‘High’ Use Credit Criteria -- Debt Management Agency In-house Deposit Facility Green Term deposits banks and – Short-term F1, In-house building societies Individual C Nationalised banks in the UK have credit ratings which do not conform to the credit criteria usually used by local authorities to identify banks which are of high creditworthiness. In particular, as they no longer are separate institutions in their own right, it is impossible for Fitch to assign them an individual rating for their stand alone financial strength. Accordingly, Fitch have assigned an F rating which means that at a historical point of time, this bank failed and is now owned by the Government. However, these institutions are now recipients of an F1+ short term rating as they effectively take on the creditworthiness of the Government itself i.e. deposits made with them are effectively being made to the Government. They also have a support rating of 1; in other words, on both counts, they have the highest ratings possible. Max £ of Max. Minimum Credit Use total maturity Criteria investments period £7million per UK nationalised Blue In-house banking 12 months banks group 2. Maturities in excess of 1 year Max £ of Max. Minimum Credit Use total maturity Criteria investments period Term deposits Purple In-house £10million 2 years –
Specified and Non-Specified Investments SPECIFIED INVESTMENTS: (All such investments will be sterling denominated, with maturities up to maximum of 1 year, meeting the minimum ‘high’ rating criteria where applicable) Minimum ‘High’ Credit Criteria Use Debt Management Agency Deposit Facility -- In-house Term deposits – banks and building societies Green Short-term F1, Individual C In-house Nationalised banks in the UK have credit ratings which do not conform to the credit criteria usually used by local authorities to identify banks which are of high creditworthiness. In particular, as they no longer are separate institutions in their own right, it is impossible for Fitch to assign them an individual rating for their stand alone financial strength. Accordingly, Fitch have assigned an F rating which means that at a historical point of time, this bank failed and is now owned by the Government. However, these institutions are now recipients of an F1+ short term rating as they effectively take on the creditworthiness of the Government itself i.e. deposits made with them are effectively being made to the Government. They also have a support rating of 1; in other words, on both counts, they have the highest ratings possible. Minimum Credit Criteria Use Max £ of total investments Max. maturity period UK nationalised banks Blue In-house £7million per banking group 12 months 2. Maturities in excess of 1 year Minimum Credit Criteria Use Max £ of total investments Max. maturity period Term deposits – Purple In-house £10million 2 years