The Hindu Business Line : Crisil reaffirms ratings on four State Govt entities

CRISIL, the credit rating agency, has reaffirmed the ratings assigned to the bond programmes of entities owned by the State Governments of Andhra Pradesh, Goa, Karnataka and Tamil Nadu.

The agency has reaffirmed the `A' (so) rating to the bond programmes of the Andhra Pradesh Government.

The reaffirmation is based on the Government's sustained efforts towards fiscal reforms, which is expected to improve its fiscal profile over the long-term based on a continued healthy growth in revenue receipts and a restrained level of revenue expenditure, said a Crisil press release.

The Goa State Infrastructure Development Corporation Ltd's (GSIDC) rating has also been reaffirmed at A (so)-Stable, on the grounds that there is an unconditional and irrevocable guarantee from the Goa government to meet the debt servicing obligations on the GSIDC bonds. The A + (so) rating assigned to the bond issue of Krishna Bhagya Jala Nigam Ltd, of the Karnataka State Financial Corporation, has been reaffirmed. Crisil has also reaffirmed the earlier A+(so) rating with a stable outlook assigned to the various bond programmes of Karnataka Government entities.

The A + (so) ratings on the Tamil Nadu Electricity Board (TNEB) bond programmes have been reaffirmed, reflecting the Tamil Nadu Government's ability to service the debt. The Tamil Nadu Government's credit profile is characterised by a healthy economic structure with a high contribution from the secondary and tertiary sectors, it said.