Morningstar revises its ratings for three debt-oriented mutual fund schemes

Research firm says important to re-visit ratings for portfolio liquidity, redemption pressures

Morningstar, the global mutual fund (MF) research house, recently gave a downward revision to ratings on three schemes -- DSP Credit Risk Fund, Nippon India Credit Risk Fund and Birla Sun Life Medium Term Fund.

In a note, Morningstar said that it was important to revisit their ratings in light of the current market situation. Coronavirus pandemic, lockdown, Franklin’s scheme wind-up, heightened redemptions and lack of liquidity in debt markets, have impacted debt MFs in recent times.

DSP Credit Risk Fund saw its ratings revised from ‘neutral’ to ‘negative’. According to Morningstar, the scheme is managed through an integrated team