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Crisil rates Bangalore Corp issue
ENS ECONOMIC BUREAU
MUMBAI, February 20: The Credit Rating Information Services of India Ltd (Crisil) has assigned an A (SO) rating to the Rs 125 crore bonds programme of Bangalore City Corporation indicating adequate safety with regard to timely payment of financial obligations on the instrument. The rating reflects the credit enhancement mechanism in the form of an escrow account which would collate property tax revenues and SFC grants, as well as support provided by the government of Karnataka. "A tripartite agreement between the state government, the trustees on behalf of the investors and the corporation would be signed. This agreement would ensure that in case of a shortfall in the escrow account, the Karnataka government would make good the shortfall," Crisil said.Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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