Rating Rationale
August 20, 2019 | Mumbai
CRISIL assigns 'CRISIL AAAmfs' rating to Reliance Liquid Fund and Reliance Money Market Fund
Rating Action
Reliance Liquid Fund CRISIL AAAmfs (Assigned)
Reliance Money Market Fund CRISIL AAAmfs (Assigned)
1 crore = 10 million
Refer to annexure for Details of Instruments & Bank Facilities
Detailed Rationale

CRISIL has assigned its 'CRISIL AAAmfs' rating to Reliance Liquid Fund (RLF), an open ended liquid scheme and Reliance Money Market Fund (RMMF), an open ended debt scheme of Reliance Mutual Fund (RMF) managed by Reliance Nippon Life Asset Management Limited (RNLAML).

The rating indicates CRISIL's opinion on the credit quality of the debt securities that the fund holds. The rating does not indicate the AMC's willingness, or ability, to make timely payments to the fund's investors. The rating is also not an opinion on the fund's net asset value (NAV). The NAV may vary with developments in the market.

Key Rating Drivers & Detailed Description
'CRISIL AAAmfs' indicates CRISIL's opinion on the credit quality of the portfolio of debt securities that RLF and RMMF holds; the rating does not indicate the willingness or ability of the AMC to make timely payments to the funds' investors. Schemes with this rating are considered to have the highest degree of safety regarding timely receipt of payments from the investments that they have made.
CRISIL's assessment of a rated fund's credit quality is based on the creditworthiness of the fund's portfolio. CRISIL has developed a credit quality matrix to assess the aggregate credit quality of a fund's underlying portfolio. The matrix is a set of credit factors and credit scores derived scientifically from the default and transition rates of CRISIL's long-term ratings. The credit factors reflect the expected default behaviour of the respective securities in the portfolio, and the expected deterioration in their credit quality. The lower the credit factor for each security, the higher would be its inherent credit quality. The credit factors are applied to the proportion of securities held in each rating category to arrive at the credit score for the portfolio. The rating on the fund is assigned on the basis of the fund's total credit score. A rated fund needs to maintain, at all times, a credit score consistent with its assigned rating.
About the Scheme
Reliance Liquid Fund (formerly known as Reliance Liquid Fund - Treasury Plan) is an open ended liquid scheme. The investment objective of the Scheme is to generate optimal returns consistent with moderate levels of risk and high liquidity by investing in debt and money market instruments with maturity of upto 91 days only.
Reliance Money Market Fund (formerly known as Reliance Liquidity Fund) is an open ended debt scheme investing in money market instruments. The investment objective of the Scheme is to generate optimal returns consistent with moderate levels of risk and liquidity by investing in money market instruments having maturity upto 1 year.
About the AMC 
RNLAML manages RMF's funds in accordance with the provisions of the investment management agreement, trust deed, regulations, and objectives of each fund. RMF had average assets under management of Rs 22,575.72 crore during the quarter ended June 30, 2019.

Any other information
A Bond Fund Credit Quality Rating indicates CRISIL's opinion on the credit quality of the portfolio of debt securities that the fund holds; the rating does not indicate the willingness or ability of the AMC to make timely payments to the funds' investors. The rating is also not an opinion on the fund's net asset values (NAVs); the NAVs can vary with developments in the market. 

Note on complexity levels of the rated instrument:
CRISIL complexity levels are assigned to various types of financial instruments. The CRISIL complexity levels are available on www.crisil.com/complexity-levels. Users are advised to refer to the CRISIL complexity levels for instruments that they consider for investment. Users may also call the Customer Service Helpdesk with queries on specific instruments.
Annexure - Details of Instrument(s)
ISIN Name of instrument Date of allotment Coupon rate (%) Maturity date Issue size
(Rs. Crore)
Rating assigned
with outlook
Annexure - Rating History for last 3 Years
  Current 2019 (History) 2018  2017   2016  Start of 2016
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Reliance Liquid Fund     CRISIL AAAmfs 01-7-19 Withdrawn 14-02-18 CRISIL AAAmfs  20-04-17 CRISIL AAAmfs     CRISIL AAAmfs
        29-5-19 CRISIL AAAmfs/Notice of Withdrawal              
Reliance Money Market Fund      CRISIL AAAmfs 01-7-19 Withdrawn 14-02-18 CRISIL AAAmfs  14-02-17 CRISIL AAAmfs 07-01-16  CRISIL AAAmfs CRISIL AAAmfs
        29-5-19 CRISIL AAAmfs/Notice of Withdrawal              
All amounts are in Rs.Cr.
Links to related criteria
Rating Methodology for Credit Quality Ratings of Bond Funds

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