STAR Ohio fund monitored by Standard & Poor's

( Columbus ) –The state's local government investment pool managed by the Ohio Treasury, known as the STAR Ohio fund, is among a group of such funds deemed to have “successfully managed through the recent credit and liquidity events with little or no impact on the pool's net asset values or ratings,” according to a national ratings agency.

In response to news about problems being experienced by some states whose investments included higher-risk instruments, Standard and Poor's said on November 30 that though they had already placed on credit watch one of the local government funds that they monitor around the country, the STAR (State Treasury Asset Reserve) Ohio fund and 73 others are “weathering the storm” caused by fallout from mortgaged-backed securities and a credit crunch.

Treasurer Cordray told STAR Ohio participants last month that he has refused to allow the fund to make any investments in asset-backed commercial paper or structured investment vehicles, tools which are now causing problems for some public investors and an outright crisis in the State of Florida, where local governments were recently blocked from withdrawing the funds they had invested to avoid a run on the local government investment pool. STAR Ohio retains its rating of AAAm, which signifies the highest available rating for such investment funds structured for principal stability akin to other money market funds.

The 5.7 billion dollar STAR Ohio fund serves more than 1,600 participants comprising county, city, and local governments and school districts from around Ohio . It was created in 1985.

More information about the STAR Ohio program can be found at www.ohiotreasurer.gov under “Programs”.