Domestic rating agency Icra has placed the ratings of six mutual fund schemes under watch with negative implications due to their exposure to the crippled infra lender IL&FS group entities.
The schemes being put under watch include a short term debt funds and banking and PSU debt funds from HDFC, banking and PSU debt fund, bond fund, dynamic bond funds from UTI , Aditya Birla Sun Life short term opportunities fund, Icra said in statement on Tuesday.
The rating action is due to the “deterioration in the credit quality” of the underlying investments of these schemes driven by their exposure to special purpose vehicles (SPVs) of IL&FS Group, the agency said.
These schemes have exposure to Hazaribagh Ranchi Expressway, Jharkhand Road Projects Implementation Company, and Jorabat Shillong Expressway, the agency said.
“The default risks by various SPVs of IL&FS have increased after the recent management communication to the trustees expressing to stop future repayments citing their interpretation of an order given by National Company Law Appellate Tribunal on October 15, 2018,” the agency explained.
Two SPVs of IL&FS demanded a refund of the debt payment executed by them after October 15, 2018 from their trustees, it added.
