The SEC's proposal also would remove references to credit ratings with respect to securities collateralizing repurchase agreements. Currently, funds seeking to meet certain diversification requirements under the Investment Company Act are permitted to “look through” to the value and liquidity of the securities that collateralize a repurchase agreement rather than looking to the creditworthiness of the counterparty to the agreement if, among other things, the collateral securities have received the highest credit rating (or are unrated securities of comparable quality), or are government securities. Under the proposed rule amendments, the board (or its delegate) would be required to determine that non-governmental collateral securities are issued by an issuer that has the highest capacity to meet its financial obligations and are highly liquid.