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I am peeking into holdings of various ultra-short term debt mutual funds (average maturity of bonds should be less than 1 year) and am coming up with AAA ratings of at least three different agencies:
1. Brickworks
2. CRISIL
3. CARE
4. ICRA

Is it correct to assume that AAA ratings from all these agencies are equally AAA?

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    They are "equivalent" in the sense that none of them are reliable.
    – Simon B
    May 15 '17 at 21:03
  • @SimonB: Yes. You are right. The whole ratings thing seems like a giant scam...
    – Sriram
    May 25 '17 at 6:15
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Is it correct to assume that AAA ratings from all these agencies are equally AAA?

Every agency has slightly different evaluation criteria of what an AAA is. Generally this rating means the company/fund are doing well and are in top category. There are cases where the same company is evaluated and given slightly different ratings, so they are not exactly same, but are equivalent.

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  • Thanks. This means that when a mutual fund claims its portfolio is 80% AAA rated bonds, I do not need to see what agency rated them. Right?
    – Sriram
    May 15 '17 at 10:26
  • @Sriram In general Yes.
    – Dheer
    May 15 '17 at 10:45

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