Fitch rates Mysore bonds AA-(ind)

Fitch Ratings said it assigned an expected national long-term rating of AA-(ind)(SO)(EXP) to Mysore Paper Mills Ltd.'s proposed Rs. 500 million issue of 10-year bonds.

The outlook is stable.

The agency said the rating is driven by the credit profile of the Government of Karnataka, which has guaranteed the repayment of principal and interest for the proposed bond issuance.

Fitch added that Karnataka's credit profile benefits from its improving relative financial position driven by buoyant revenue and expenditure reforms, and it draws strength from the favorable economic climate from the growth of the services sector and its prudent financial management.

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