(Bloomberg) -- Morningstar Inc. analysts may downgrade their ratings for Pacific Investment Management Co.’s mutual funds after a review of the firm’s regulatory issues, board quality, manager incentives, fees and corporate culture.

The research firm downgraded Pimco’s stewardship grade to a C from B following a visit to the Newport Beach, California- based fund company by Morningstar analysts March 10. The highest grade is an A and the worst is an F. One of the categories used for Morningstar’s analyst ratings that looks at the priorities of the firm was also downgraded to neutral from positive. Analyst ratings are qualitative, and different from the firm’s five-star rating system, which is based on risk-adjusted returns.

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