Many Indian cities have obtained credit ratings which are necessary for mobilization of resources fo...........

Economic Affairs Financial Markets

Many Indian cities have obtained credit ratings, which are necessary for mobilization of resources for Smart City Mission and AMRUT like schemes. Consider the following in this reference.

1. Higher credit ratings help ensure better sale of Municipal Bonds.

2. No Indian city has received ‘Investment Grade’ ratings.

Which of the above is/are correct?

1 only

2 only

Both 1 and 2

None

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Explanation:

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.
Statement 2: 55 of these cities have got ‘Investment Grade’ ratings. So many cities getting Investment Grade rating was better than what was thought of about the financial situation of Urban Local Bodies in the country. These cities are spread across 14 States.
Ministry of Urban Development is promoting Credit Rating of cities as one of the Transformational Reforms.