Due to what it calls deteriorating weighted average credit quality, along with a volatile and falling net asset value,
Earlier, on Sept. 18, Moodys placed all
Moodys said it expects the portfolios market risk to remain elevated due to market illiquidity and worsening fundamental performance in most asset classes in the funds underlying portfolio.
Moodys explained that funds rated A are considered to be medium- to upper-grade investment vehicles, while MR refers to mutual funds market risk, i.e. the volatility of their NAV as caused by holdings, interest rate risk, prepayment and extension risk, liquidity and concentration risks, currency risk and derivatives risk. Funds rated MR5 are judged to have very high sensitivity to changing interest rates and other market conditions.