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| Rating >> Public Finance Rating >> Urban Local Bodies |
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| Municipal Corporations |
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| Ratings of Municipal Bonds are ratings assigned to bonds issued by various municipal corporations across the country. Municipal corporations are primarily engaged in developmental activities for cities/regions under their jurisdiction. Thus, ratings on municipal bonds undertake a holistic view on social, economic and financial parameters of the Municipal Corporation. A detailed analysis of existing and prospective development of the city along with an analysis of the debt position of the corporation is considered for such ratings. |
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Urban Local Bodies
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| Municipal Corporations have also been rated on a stand-alone basis based on their own finances and other strengths. This was done under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) Rating exercise. These ratings help the corporations to assess their own progress over the years and hence act as an internal check for them even when they are not raising any funds from the market. Issuer ratings of 13 Urban Local Bodies (ULBs) were completed as part of an assignment under the JNNURM. CARE was one of the rating agencies designated by the Ministry of Urban Development, Government of India to carry out the ratings. This has been a unique credit rating exercise comprising assessment of the general credit worthiness of the ULBs. It for one, reveals the relative standing of the corporations and in turn the extent to which the projects in question can be financed on their own strength. On the other hand, it also marks the first step towards the ULBs approaching the debt markets to bridge the resource-need gap for the substantial ramp-up in capex envisaged under the mission. Hence the assignment is itself a watershed in the development of municipal debt markets in the country. |
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