Fitch rates Krishna Bhagya Jala bonds AA-(SO)(ind)

Fitch Ratings said it assigned Krishna Bhagya Jala Nigam Ltd.'s proposed Rs. 5 billion secured redeemable and non-convertible taxable bond an expected rating of AA-(SO)(ind).

The rating reflects the credit profile of the government of Karnataka, given their unconditional and irrevocable guarantee for the principal and interest obligations until the bond is fully redeemed, according to the agency.

The rating also benefits from budgetary support for servicing the bond obligation and the tripartite agreement delineating a structured payment mechanism, Fitch said.

The rating further reflects other security features such as first mortgage and charge on properties, the agency said.

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