Why does Fidelity Magellan Fund get a 3 star, "average" Morningstar 10 year rating?

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Ratings are done by comparing a fund’s performance against peers. While this one did pretty bad, others, apparently, did worse.

We’ve been through some pretty rough financial waters over the last few years. And none of these funds did that well. Which means to me that this is all a crap shoot, and no one seems to know more than another what is really going on. If someone knows a fund that moved out of stocks and into cash while the market tanked, I would love to know about it.

Yes, as @bob_ it is a comparative rating. There may also be a factor included that addresses the stability of the company, versus one that is on the brink of disaster.