I like ESD and own some, but I would pay no heed to a Morningstar rating on any closed-end fund. Morningstar does not cover CEFs and basically hasn't a clue how to evaluate or compare them.

If you want to research ESD you might wish to check the following links:

Western Asset Emerging Markets Debt Fund web site 

ESD Portfolio Characteristics as of 09/30/07 

ESD Press Releases 

Changes to Non-Fundamental Investment Policies (important to read)

ESD Managed Distribution Policy  (interesting that ESD has NOT applied for exemptive relief to implement the MDP)

ESD SEC Filings 

Happy New Year,

Steve