Fitch assigns ratings to India municipalities

Fitch Ratings said it assigned 13 national long-term issuer ratings to urban local bodies across India. Those ratings include Greater Mumbai at AA(ind); Navi Mumbai at AA(ind); Kalyan Dombivili at A(ind); Mira-Bhyander at A-(ind); Pune at AA-(ind); Thane at AA-(ind); Jaipur at BBB+(ind); Ajmer at BBB-(ind); Indore at BBB(ind); Bhopal at BBB-(ind); Jabalpur at BB+(ind); Ujjain at BB(ind); and Guwahati at BB(ind).

The outlook for the municipalities is stable, except for Jaipur, which has a positive outlook.

The ratings were commissioned by the government's Jawaharlal Nehru National Urban Renewal Mission, Ministry of Urban Development.

The ratings reflect the urban local government's relative strengths and weaknesses as they initiate their ambitious city development plans, Fitch said.

By providing investors, bankers and other market participants with independent credit opinions, Fitch said it believes that could potentially lead to the creation of a municipal bond market in India.

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