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Tag: downgrades

India Ratings (Ind-Ra) downgrades UTI Ultra Short Term Fund to ‘IND AAmfs’

Finance
India Ratings and Research (Ind-Ra) has downgraded UTI Ultra Short Term Fund’s National Fund Credit Rating to ‘IND AAmfs’ from ‘IND AAAmfs’. The fund has also been placed on Rating Watch Negative (RWN), said a statement by the rating agency on Thursday. The rating agency noted that the downgrade and RWN follows downward credit migration in one of the underlying investments of UTI Ultra Short Term Fund. The statement also said that Ind-Ra is closely monitoring the fund’s exposure to the investment that has seen a series of credit rating downgrades. The RWN indicates that rating may be either affirmed or downgraded on resolution. The RWN will be resolved after Ind-Ra achieves full clarity on the stability of the credit quality of the underlying investment. "The agency considers weighted a
Rating downgrades and payment delays not new to debt mutual funds

Rating downgrades and payment delays not new to debt mutual funds

Finance
The prospects of debt mutual funds are back in focus after Kotak Mutual Fund’s fixed maturity plans (FMPs) failed to return investors’ entire money on account of delay in repayment by two Essel group companies. In the past too, investors in various debt schemes have been affected by ratings downgrades of investments, defaults or delay in repayments. ET looks at such instances. Amtek Auto MF: JP Morgan TIME: August 2015 SCHEMES: JP Morgan India Short Term Income Fund and JP Morgan India Treasury Fund FALL IN NAV: 1-3% BRICKWORK RATINGS brought down its rating to C from A+, while CARE suspended coverage of Amtek Auto. Soon, JP Morgan side-pocketed the Amtek Auto exposure and allotted units to investors. In December, JP Morgan sold Amtek Auto bonds at 85% of the value. Investors, who stayed i