Patna: Patna Municipal Corporation has received an ‘AA’ credit rating from India Ratings & Research, marking a key step towards its proposed Rs 200 crore municipal bond issuance.
According to the corporation, the rating reflects improvements in revenue collection, sustainable sources of internal income and financial management. It also indicates the civic body’s assessed ability to meet its financial obligations on time.
The corporation said greater transparency and financial discipline, along with continued improvements in revenue collection, contributed to the rating.
Rating Supports Bond Plans
The ‘AA’ rating is expected to strengthen the corporation’s financial standing as it moves ahead with plans to raise Rs 200 crore through a municipal bond.
Credit rating agencies assess municipal bodies on factors including financial health, revenue-generating capacity, financial management and their ability to service interest and principal payments.
The corporation said the rating provides a positive assessment of its capacity to meet long-term financial obligations.
Next Steps For Bond Issuance
Following the rating, the corporation will proceed with the next stages of the proposed bond issuance.
These include filing the Private Placement Memorandum (PPM), securing required regulatory approvals, finalising the bond structure, engaging with investors and completing the issuance and allotment process.
The proposed municipal bond is subsequently expected to be listed on the National Stock Exchange (NSE).
According to the corporation, an NSE listing would provide access to institutional investors through a regulated and transparent capital market and help it mobilise long-term financial resources.
