Downgrades are becoming a part of investing in debt mutual funds. Downgrade of Amtek AutoBSE -0.14 % paper was a rude wake up call to many debt mutual fund investors in 2015. However, a spate of downgrades in the recent past are forcing conservative investors in debt mutual funds to take a close look at their investments?
Ratings of IDBI BankBSE 0.33 % and Reliance Communications were downgraded in the recent past. The latest one to join the list is Adani Power. The rating agency CrisilBSE 1.18 % downgraded Adani Power, citing that the company has total debt of about Rs. 54,000 crore on it. Adani PowerBSE 0.93 % was downgraded to BB- by the rating agency.
