Care downgrades Maharashtra

Mumbai, Mar 14: Credit Analysis and Research Ltd Care has downgraded the bond issues of five Maharashtra government promoted irrigation corporations from Care AA-SO8217; to Care ASO8217; indicating a drop from high quality to adequate safety. The downgrade indicates the weakening financial position of the State Government.

quot;The outstanding guaranteed bond issue of the five irrigation development corporations 8212; Maharashtra Krishna Valley Irrigation Development Corporation MKVIDC Rs 772 crore, Godavari Marathawada Rs 654 crore, Konkan Rs 213 crore, Vidharbha Rs 460 crore and Tapi Rs 439 crore 8212; have been downgraded,quot; the rating agency said in a release.

These ratings are implicit ratings for the Maharashtra government in the sense that the state government does not borrow in the market through bonds, it only guarantees the bonds issued by the state corporations. quot;Maharashtra government8217;s fiscal position had displayed stress in recent years arising from a growing revenue deficit. This has lead to the downgrade of the five state-owned corporations,quot; Care said.