• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• The Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Mumbai , Oct. 18

CRISIL has upgraded its ratings on Maharashtra Krishna Valley Development Corporation (MKVDC) bonds, issued by the Maharashtra Government. They have been upgraded to BBB- from the 2002 default status of `D'.

Ms Roopa Kudva, Executive Director and Chief Rating Officer, Crisil, told presspersons that the bonds had been upgraded not on its own merit but based on the confidence that the Maharashtra Government has shown in debt servicing.

"Maharashtra's debt servicing has been on time. Liquidity management has also been stronger. There is improving debt management. As a guarantor to the MKVDC bonds, Maharashtra Government will pay the money" Ms Kudva said.

Along with Maharashtra, Crisil has also upgraded its ratings of bonds issued by the Karnataka Government. The rating upgrades reflect an improvement in the financial risk profiles of these two state governments.

Additionally, in Maharashtra's case, the upgrade reflects the timely servicing, over the last 12 months, of all debt guaranteed by the Maharashtra Government. Crisil has also reaffirmed its ratings on entities owned and supported by the state governments of Andhra Pradesh, Gujarat and Tamil Nadu; these States too have demonstrated good economic performance, a release by the rating agency said.

Crisil ratings on debt instruments guaranteed by state governments are as follows:

Karnataka: AA-(so), Tamil Nadu: A+(so), Andhra Pradesh: A(so), Goa: A(so)/stable, and Gujarat: BBB(so)/stable.

The improvement in the financial risk profile of Karnataka stems from the State's consistent pursuit of its reform agenda, buoyancy in tax revenues backed by a strengthening of the State economy and effective expenditure containment.

In the case of Maharashtra, the State's improved guarantee management, its resolve to avoid any default on its guaranteed borrowings and its proactive fiscal reform agenda are key factors.

The favourable economic environment in recent years has had a beneficial effect on Crisil-rated States' revenues. The agency has also noted that these States have controlled their expenditure and displayed a renewed focus on reforms.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Rupee sheds 30 p; bonds listless

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line