NDMC, Navi Mumbai and Pune tops credit rating

NDMC, Navi Mumbai and Pune tops credit rating

New Delhi Municipal Council (NDMC), Navi Mumbai and Pune has topped credit rating for urban local bodies (ULB) in a survey conducted by ministry of urban development, government of India.

The credit rating exercise undertaken by the ministry of urban development has revealed that 55 of these cities have got ‘Investment Grade’ ratings right from AA+ to BBB. Around 39 cities that have got credit ratings below the investment grade (BBB-) have to undertake necessary interventions for improving the ratings within one year.

These rating will be helpful for cities for mobilisation of resources through municipal bonds as and when they plan it in future.

Credit Rating of Indian Urban Local Bodies

Credit Rating – Cities/Towns

(AA+) – New Delhi Municipal Council, Navi Mumbai and Pune

(AA) – Ahmedabad, Visakhapatnam and Greater Hyderabad Municipal Corporation

(AA-) – Surat, Nashik, Thane and Pimpri-Chindawad

(A+) – Indore, Kishanganj, Kolkata, Vadodara and Warangal

(A) – Jhunjhunu

(A-) – Alwar, Bhiwadi, Beawar, Jaipur, Bhopal, Jabalpur, Mira Bhayandar and New Town Rajarhat

(BBB+) – Ajmer, Kota, Udaipur, Ludhiana and Jamnagar

(BBB) – Kakinada, Anantapur, Kurnool, Tirupati, Davanagere, Hubbali-Dharwar, Kochi, Trivandrum, Panaji, Kolhapur, Nagpur, Jodhpur, Nagaur and Tonk

(BBB-) – Amaravati, Belgavi, Bharuch, Bhavnagar, Bharatpur, Bhilwara, Bikaner , Hanumangarh, Chittor, Cuddapah, Cuttack and Ranchi

(BB+) – Proddatur, Nandlal, Nellore, Kollam, Kozhikode, Kalol, Nadiad, Navsarai, Nanded, Solapur, Gangapur City, Dhaulpur, Pali and Sawai Madhopur

(BB) – Adoni, Tadipatri, Dwaraka, Aizawal, Thrisur, Berhampur, Rourkela, Sambhalpur, Bundi, Churu, Chittorgarh, Hindaun, Jodhpur and Sujangarh

(BB-) – Adityapur, Chas, Deogarh, Giridh, Mori, Baran and Jhalawar

(B+) – Baripada, Puri and Hazaribagh

(B) – Bhadrak

Speaking on credit rating exercise, minister of urban development M. Venkaiah Naidu said, “55 of these cities have got ‘Investment Grade’ ratings. 59% of cities assessed getting investment grade rating was better than what was thought of about the financial situation of urban local bodies in the country.”

Presently, 94 cities have been assigned credit ratings spread across 14 states. The ministry of urban development is promoting credit rating of cities as one of the five transformational reforms under which about 500 cities and towns that account for about 65 percent of total urban population were to be given credit ratings during this year.

Credit Ratings are assigned based on assets and liabilities of ULB, revenue streams, resources available for capital investments, double entry accounting practice and other governance practices. Besides the credit rating of ULBs, ratings for individual projects for which resources are to bemobilised through municipal bonds would have a bearing on the response to such bonds.