UTI MF scheme's rating revised to AA for 'downward credit migration'

India Rating say downgrade was done because of "downward credit migration in one of the underlying investments" of the fund.

UTI Mutual Fund’s (MF) ultra short term fund has been downgraded by India Ratings from AAA to AA.

“India Ratings and Research has downgraded UTI Ultra Short Term Fund’s National Fund Credit Rating to ‘IND AAmfs’ from ‘IND AAAmfs’ while placing it on Rating Watch Negative (RWN). 

The fund is managed by UTI Asset Management Company,” said a statement by the rating agency. 

The reason cited for the downgrade was “downward credit migration in one of the underlying investments” of the fund. 

Peopl in the know said more debt schemes in the industry could see adverse rating action, as issuers such as the recently-downgraded