Rationale

Rationale and key rating drivers

 ICRA has reaffirmed the ratings of various debt mutual fund (MF) schemes of Kotak Mahindra Asset Management Company Limited (the asset management company; AMC). The ratings have been reaffirmed following ICRA’s monitoring of the credit risk profile of the month-end portfolio position of these schemes. The credit risk scores for these schemes were comfortably within the benchmark limits for their current rating levels. MF ratings incorporate ICRA’s assessment of the creditworthiness of a debt MF scheme’s investment portfolio. These ratings are a symbolic representation of the credit risk in the underlying investments or the degree of safety regarding the timely receipt of payments from the investments made by the MF schemes. The ratings do not indicate the AMC’s and/or any of its scheme’s willingness and/or ability to make timely redemptions to its investors. The ratings do not address market risks and hence should not be construed as an indication of the expected returns, prospective performance of the mutual fund scheme, and the ability to redeem investments at the reported net asset value (NAV) or volatility in its past returns, as all these are influenced by market risks. ICRA’s assessment of debt MF schemes is guided by the credit ratings of the individual investments and the relative share of the schemes’ allocation towards the investments, besides the maturity schedule of such investments. ICRA’s MF ratings are not a reflection on the quality of the management of the AMC or its financial performance, reputation and other business practices including investment strategies, pricing, marketing and distribution activities. Furthermore, the ratings are not a reflection of whether the AMC or the fund is compliant with the applicable regulatory requirements