Rating Rationale
February 14, 2017 | Mumbai
CRISIL reaffirms 'CRISIL AAAmfs' rating on Reliance Liquidity Fund
 
Rating Action
Reliance Liquidity Fund CRISIL AAAmfs (Reaffirmed)
1 crore = 10 million
Refer to annexure for Details of Instruments & Bank Facilities
Detailed Rationale

CRISIL has reaffirmed its 'CRISIL AAAmfs' rating on the above-mentioned scheme of Reliance Mutual Fund (RMF). The scheme is managed by RMF's asset management company (AMC), Reliance Nippon Life Asset Management Ltd (RNLAM)
 
The rating indicates CRISIL's opinion on the credit quality of the debt securities that the funds hold; the rating does not indicate the AMC's willingness, or ability, to make timely payments to the funds' investors. The rating is also not an opinion on the funds' net asset values (NAVs); the NAVs can vary with developments in the market.
 
Key rating drivers and detailed description
 'CRISIL AAAmfs' indicates CRISIL's opinion on the credit quality of the portfolio of debt securities that BOIAMF holds; the rating does not indicate the willingness or ability of the AMC to make timely payments to the funds' investors. Schemes with 'CRISIL AAAmfs' 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 will 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 AMC 
RNLAM has been set up to act as the AMC for RMF. The AMC manages the scheme of the funds in accordance with the provisions of the investment management agreement, the trust deed, the regulations, and the objectives of each scheme. RNLAM had average mutual fund assets under management of Rs. 195845.43 crore during the quarter ended December 31, 2016.

Any other information: Not applicable

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 cr) Rating assigned with outlook
NA NA NA NA NA NA NA
 
Annexure - Rating History for last 3 Years
  Current (History) 2016   2015   2014   Start of 2014
Schme Type Quantum Rating Date Rating Date Rating Date Rating Date Rating Rating
Reliance Liquidity Fund   -- CRISIL AAAmfs    
No Rating Change 
  16-01-15 CRISIL AAAmfs   -- --
Table reflects instances where rating is changed or freshly assigned. 'No Rating Change' implies that there was no rating change under the release.
Links to related criteria
Rating Methodology for Credit Quality Ratings of Bond Funds

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