Understanding Ratings
Funds
The KBRA Fund Rating (KFR) applies only to investment funds. KFRs are not traditional credit ratings and are differentiated from long-term credit and issuer ratings by the usage of a distinct ‘kf’ subscript. A KFR does not provide an indication of performance as it relates to returns, as measured versus peers, volatility or yield. A KFR measures the quality of a fund's underlying portfolio and the ability of the management team to deploy a fund’s investment strategy, as follows (Additional details are available in our Investment Funds Global Rating Methodology):
A downloadable version of our Rating Scales and Services can be accessed here.
| AAAkf | Describes funds of the highest quality. |
| AAkf | Describes funds of very high quality. |
| Akf | Describes funds of high quality. |
| BBBkf | Describes funds of medium quality. |
| BBkf | Describes funds of low quality. |
| Bkf | Describes funds of very low quality. |
| CCCkf | Describes funds of extremely weak quality. |
| CCkf | Describes funds of exceedingly weak quality. |
| Ckf | Describes funds of weakest quality. |