"You can't openly state that you'd support a fund since funds are technically their own companies, so how will they know?" he asked. "They'd only know from those companies that have provided support before, in which case you're rewarding the ones who have previously gotten into trouble."
Henry Shilling, senior vice president at the global managed investments group at Moody's, said Moody's would use its own judgment about a parent company's ability and willingness to support a fund. But, he said, "There's a long and established track record of parental support."
"Parent companies have been stepping in for as long as the money-market fund industry has existed," Shilling said.
Moody's said the proposals are open to public response until Nov. 5. Shilling and Serrao said they hope to hear from fund firms, regulators and investors.
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