Sintex-BAPL's downgrade hits BOI AXA's Mutual Fund's credit scheme

The auto ancillary company accounted for over 20 per cent of the scheme's assets

BOI AXA Mutual Fund (MF) -- a joint venture between Bank of India and the France-based AXA Investment Managers -- has had to take a mark-to-market hit in its credit risk fund following downgrade of the auto ancillary company Sintex-BAPL, which accounted for over 20 per cent of the scheme's assets.

The scheme's net asset value dipped six per cent on Monday after CARE Ratings downgraded the debt papers from BBB-plus to BB-plus, which is below the investment grade.

"Valuation agencies in line with the circular of Securities and Exchange Board of India (Sebi) have stated that the below-investment-grade downgrade