Fitch rates Shillong Municipal B+(ind)

Fitch Ratings said it assigned Shillong Municipal Board a national long-term issuer rating of B+(ind).

The outlook is stable.

The rating is constrained by the board's weak financial profile, inadequate institutional, technical and managerial capacities, inefficient cost recovery systems and slo progress on important reforms mandated by the Jawaharlal National Urban Renewal mission program, Fitch said.

The municipality has a mammoth capital expenditure plan of Rs. 25.44 billion, which is grossly disproportionate to its revenue base, the agency added.

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