59%
cities get Investment Grade rating
NDMC,
Navi Mumbai and Pune lead with AA+ Rating
Ahmedabad,
Visakahapatnam, Hyderabad come next with AA Rating
Kolkata-A+,
Bhopal and Jaipur-A-, Thiruvananthapuram and Panaji-BBB,
Ranchi-BBB-, all investment grade
Shri
M.Venkaiah Naidu reviews progress of Credit Rating of Smart Cities and AMRUT
cities
With
the exercise of Credit Rating of cities and towns gaining momentum, 94 of the
500 cities included in Smart City Mission and Atal Mission for Rejuvenation and
Urban Transformation (AMRUT) have obtained such ratings which are necessary for
issuing Municipal Bonds for mobilization of resources.
During
the review of progress of Credit Rating exercise taken by Minister of Urban
Development Shri M.Venkaiah Naidu yesterday, it was revealed that 55 of these
cities have got ‘Investment Grade’ ratings. Shri Naidu noted that 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.
The
94 cities that have so far been assigned Credit Ratings are spread across 14
States. 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% of total urban population were to be given Credit
Ratings during this year.
Of
the total 20 ratings ranging from AAA to D, BBB- is the ‘Investment
Grade’ ratings and cities rated below BBB- need to undertake
necessary interventions to improve their ratings for obtaining positive
response to the Municipal Bonds to be issued.
Credit
Ratings are assigned based on assets and liabilities of Urban Local Bodies,
revenue streams, resources available for capital investments, Double Entry
Accounting practice and other governance practices. Besides the Credit Rating
of Urban Local Bodies, ratings for individual projects for which resources are
to bemobilised through Municipal Bonds would have a bearing on the response to
such bonds.
Details
of cities and towns and respective Credit Ratings are as below:
|
Credit
Rating
|
Cities/Towns
|
|
AA+
(3)
|
New Delhi
Municipal Council (NDMC), Navi Mumbai and Pune
|
|
AA (3)
|
Ahmedabad,
Visakhapatnam and Greater Hyderabad Municipal Corporation
|
|
AA-
(4)
|
Surat, Nashik,
Thane and Pimpri-Chindwad
|
|
A+ (5)
|
Indore,
Kishanganj(Rajasthan), Kolkata, Vadodara(Gujarat) and Warangal(Telangana)
|
|
A (1)
|
Jhunjhunu
(Rajasthan)
|
|
A-(8)
|
Alwar,
Bhiwadi, Beawar, Jaipur(Raj), Bhopal,Jabalpur(MP), Mira Bhayandar(Maha) and
New Town Rajarhat(W.Bengal)
|
|
BBB+ (5)
|
Ajmer , Kota
and Udaipur(Rajasthan), Ludhiana(Punjab) and Jamnagar(Guj)
|
|
BBB (14)
|
Kakinada,
Anantapur, Kurnool and Tirupati (Andhra Pradesh), Davanagere and
Hubbali-Dharwar(Karnataka), Kochi and Trivendrum (Kerala), Panaji (Goa),
Kolhapur and Nagpur(Maharashtra), Jodhpur, Nagaur and Tonk(Rajasthan)
|
|
BBB-
(12)
|
Amaravati
(Maharashtra), Belgavi (Karnataka), Bharuch and Bhavnagar (Gujarat),
Bharatpur, Bhilwara, Bikaner and Hanumangarh(Rajasthan), Chittor and Cuddapah
(Andhra Pradesh), Cuttack (Odisha), Ranchi (Jharkhand).
|
|
BB+
(14)
|
Proddatur,
Nandyal and Nellore (Andhra Pradesh), Kollam and Kozhikode (Kerala), Kalol,
Nadiad and Navsarai (Gujarat), Nanded and Solapur (Maharashtra), Gangapur
City, Dhaulpur, Pali and Sawai Madhopur (Rajasthan)
|
|
BB (14)
|
Adoni and
Tadipatri (Andhra Pradesh), Dwaraka (Gujarat), Aizawal (Mizoram), Thrisur
(Kerala), Berhampur, Rourkela and Sambhalpur (Odisha), Bundi, Churu,
Chittorgarh, Hindaun, Jodhpur and Sujangarh (Rajasthan)
|
|
BB-
(7)
|
Adityapur,
Chas, Deogarh and Giridh (Jharkhand), Mori (Gujarat), Baran and Jhalawar
(Raj)
|
|
B+
(3)
|
Baripada and
Puri (Odisha) and Hazaribagh (Jharkhand)
|
|
B (1)
|
Bhadrak
(Odisha)
|
As
per the reforms timelines suggested by the Ministry of Urban Development, 39
cities that have got Credit Ratings below the investment grade (BBB-)
have to undertake necessary interventions for improving the ratings in one
year.
****
AAR/KM
March
26, 2017