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Belagavi ULB has poor credit rating

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love dale belagavi

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.

Belagavi City Corporation has a credit rating of BBB– 
Rating of BBB or below shows their finances are weak to raise funds

The creditworthiness of three major cities in Karnataka – Hubballi-Dharwad, Davangere and Belagavi – which have also been identified for development under Smart Cities project is lower medium grade as they have got credit rating of BBB or below.

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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 be mobilised through Municipal Bonds would have a bearing on the response to such bonds.

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

Trinity Belagavi
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2 COMMENTS

  1. After long long time belgaum has got this opportunity from centre.the people in charge should work on this project.
    SMART CITY.

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