Fitch Ratings Tuesday affirmed Invesco India Bond Fund's international fund credit quality rating of 'BBB-f', an investment-grade rating.
The Invesco Indian Bond Fund aims to generate a long-term steady stream of income and capital appreciation.
"The affirmation of the international fund credit quality rating reflects the fund's adequate underlying credit quality, taking into consideration the long maturity profile of the fund's assets," the agency said in a note.
The fund is regulated under the European Commission's Undertakings for Collective Investments in Transferable Securities Directive.
Domiciled in Luxembourg, the fund is managed by Invesco Hong Kong.
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As of end-April 2019, the fund had USD 576 million in assets under management.
It invests mainly in local currency Indian government securities, government-related securities and corporate bonds.
The fund anticipates investing at least 35 per cent in debt securities issued and/or guaranteed by India (BBB-/Stable), according to the investment guidelines.
It's assets were 34 per cent Indian government bonds as of end-April 2019, 5 per cent were securities issued by sub-sovereign entities, 2.7 per cent were 'AAA' rated money market funds, 54.2 per cent were rated 'AAA' on a national scale in the country by domestic rating agencies
The rating agency further said a downgrade of India's international long-term issuer default rating would probably lead to a downgrade of the fund because of the large portion of government securities in the fund.
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