Standard & Poor's (S&P) has pulled its fund rating on the Basis Yield Fund after liquidators were called in.
"S&P has withdrawn its rating following the announcement that the master fund has been placed into liquidation, with representatives of Grant Thornton announced as joint provisional liquidators," S&P fund analyst David Erdonmez said.
The Yield Fund was placed on hold by S&P on July 18.
Last week Basis Capital filed a petition in New York applying to a court in the Cayman Islands for permission to liquidate its assets.
This followed a letter to its investors on July 11 where Basis advised that in July its two funds, the Basis Yield Fund and Basis Aust-Rim Opportunity Fund, had lost around 14 per cent and 9 per cent respectively.
Basis said the falls took place after bond dealers suddenly marked down the value of the securities, which it said were otherwise fundamentally sound.
In August, the group advised investors that losses in the Basis Yield Fund could reach more than 80 per cent of assets.
Basis Capital, founded in 1999 by Stuart Fowler and Steve Howell, had more than $1 billion in assets as recently as May.
The on hold rating of the Basis Aust Rim Opportunity Fund remains, until the provision of additional information by the management of Basis Capital, S&P said.
Basis management advised S&P that it could not give an update on the positioning of the fund due to legal restrictions.
