94 cities assigned Credit Ratings as Smart Cites

navimumbaiBy Accommodation Times Bureau

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.

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