(The following statement was released by the rating agency)PARIS/LONDON, June 14 (Fitch) Fitch Ratings has upgraded CDG Capital Gestion (CKG) asset manager rating to 'Highest Standards(mar)' from 'High Standards(mar)'. The Outlook is Stable.  KEY RATING DRIVERSThe upgrade reflects the strengthening of CKG's risk management and control framework: the appointment of an independent risk manager, documentation of update of risk policies and procedures, formalisation of key investment risk parameters and the implementation of a constraint server for compliance monitoring. The rating also reflects CKG's long track record in serving institutional clients and solid market position in the Moroccan asset management industry, as well as the financial strength of its parent, CDG Group.The main challenges facing CKG are to continue efforts to diversify its client base (still concentrated towards institutional investors compared to peers) by capitalising on the network partnerships established (CIH, and recently ABB), and stabilising the teams after some internal mobility and recruitments.CKG's 'Highest Standards(mar)' rating is based on the following category scores:Company: HighestControls: HighestInvestments: HighestOperations: HighTechnology: HighestAsset manager operations in the 'Highest Standards(mar)' category demonstrate an investment platform and operational framework that Fitch considers superior relative to the standard applied by domestic institutional investors.Company: As the second-largest asset management company in Morocco, CKG benefits from a strong track record and market presence in the institutional space with a growing penetration of the retail market. CKG is well staffed and has a track record of profitability. However, the company has witnessed recent turnover in the equity team and the arrival of a new CEO in 2012. The organisation has been strengthened with the recruitment of a dedicated analyst and a trader; as well as the appointment of a Risk Manager, formerly Head of Middle-Office.Controls: The creation of an independent risk unit in 2012 led by a dedicated Risk Manager has contributed to important developments in the elaboration and update of risk procedures and policies, such as those governing conflicts of interest, counterparty selection, and voting policies. Operational risk control also benefits from an updated operational risk mapping, and the implementation of an order management system module on equities. Guidelines and limits are also now monitored though a constraints server in MANAR (the third-party central position keeping), with breaches reported through a formal escalation procedures. Credit and liquidity risks have also seen improvements, notably though new scoring methodologies. Fitch notes the structural problem of a lack of liquidity in the Moroccan market environment.Investments: The investment processes primarily focus on domestic fixed income and equity markets, with a marginal coverage of international assets (limited to 10% of a portfolio's total assets by regulation). The decision making process is clearly structured and based on a collegial investment approach around a sequence of committees. The team was strengthened by the appointment of a dedicated analyst (credit and equity) and a dedicated equity trader. Operations: CKG's operational and valuation procedures are well documented and adequately controlled. The central position-keeping and operations tool, MANAR, adequately meets operational requirements. The team is well staffed with regards to volumes and instruments traded, although the team Head, who has also been appointed Head of Risk Management, is expected to be replaced soon. Incremental area of improvements lies with the automation of matching with third parties and frequency of reconciliation, that are close to best practices overall. The firm has been GIPS compliant since 1999.Technology: IT projects and developments are delegated to CDG Capital, with a dedicated person present at CKG on a full-time basis being close and responsive to the investment company's specific needs. MANAR is the company's core system for portfolio position keeping, trade life cycle management, controls of investment constraints and back-office activities. It fits adequately the needs and coverage of the company. Incorporated in 1997, CKG is a subsidiary of CDG Capital, itself owned by CDG Group, a public institution and the largest institutional investor in Morocco, comprising a large portfolio of activities. At end-December 2012, CKG was the second-largest Moroccan asset manager with MAD42.7bn assets under management (around EUR3.8bn). CKG serves group subsidiaries, large institutional investors such as pension funds, banks, foundations and insurance companies, as well as corporates. Its assets are concentrated on fixed income (90%), in line with the overall local market, with the remainder being equity and balanced portfolios.RATING SENSITIVITIES The rating may be sensitive to material adverse changes to any of the rating drivers, notably through weakened financial conditions, heightened staff turnover or deterioration of processes and policies. A material deviation from Fitch's guidelines for any key rating driver could cause the rating to be downgraded.Contact: Primary AnalystFrancois Vattement, CFAAnalyst+33 1 44 29 92 75Fitch France S.A.S.60 rue de MonceauParis 75008Secondary AnalystManuel Arrive, CFASenior Director+33 1 44 29 91 77Committee ChairpersonAymeric Poizot, CFA, CAIAManaging Director+33 1 44 29 92 76Media Relations: Hannah Huntly, London, Tel: +44 20 3530 1153, Email: hannah.huntly@fitchratings.com.Additional information is available on 
  www.fitchratings.com
 Applicable criteria, 'Asset Manager Rating Criteria', dated 22 April 2013, are available at 
  www.fitchratings.com.
 Applicable Criteria and Related Research: Asset Manager Rating Criteria
  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=706476
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  http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=793662
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June 14 (Reuters) - (The following statement was released by the rating agency)

Fitch Ratings has upgraded CDG Capital Gestion (CKG) asset manager rating to 'Highest Standards(mar)' from 'High Standards(mar)'. The Outlook is Stable.

KEY RATING DRIVERS

The upgrade reflects the strengthening of CKG's risk management and control framework: the appointment of an independent risk manager, documentation of update of risk policies and procedures, formalisation of key investment risk parameters and the implementation of a constraint server for compliance monitoring.

The rating also reflects CKG's long track record in serving institutional clients and solid market position in the Moroccan asset management industry, as well as the financial strength of its parent, CDG Group.

The main challenges facing CKG are to continue efforts to diversify its client base (still concentrated towards institutional investors compared to peers) by capitalising on the network partnerships established (CIH, and recently ABB ABBN.VX ), and stabilising the teams after some internal mobility and recruitments.

CKG's 'Highest Standards(mar)' rating is based on the following category scores:

Company: Highest

Controls: Highest

Investments: Highest

Operations: High

Technology: Highest

Asset manager operations in the 'Highest Standards(mar)' category demonstrate an investment platform and operational framework that Fitch considers superior relative to the standard applied by domestic institutional investors.

Company:

As the second-largest asset management company in Morocco, CKG benefits from a strong track record and market presence in the institutional space with a growing penetration of the retail market. CKG is well staffed and has a track record of profitability. However, the company has witnessed recent turnover in the equity team and the arrival of a new CEO in 2012. The organisation has been strengthened with the recruitment of a dedicated analyst and a trader; as well as the appointment of a Risk Manager, formerly Head of Middle-Office.

((Bangalore Ratings Team, Hotline: +91 80 6677 2513 Debanjali.Ghosh@thomsonreuters.com, Group id: BangaloreRatings@thomsonreuters.com, Reuters Messaging: Debanjali.Ghosh.reuters.com@reuters.net))

Keywords: Fitch Upgrades CDG Capital Gestion to 'Highest Sta