AP’s ranks 2nd in preference for its govt bonds, Telangana 13th – says India Ratings !!

andhra rising againMaharashtra, Andhra Pradesh, Tamil Nadu and Gujarat will emerge as preferred destinations for investment in state development loans (SDLs), India Ratings and Research (Ind-Ra) said today.

“We find Maharashtra SDLs rank the best among states when it comes to trading of bonds. Notwithstanding the size and frequency of their issuances, appetite for Maharashtra SDLs is strong,” the rating agency said. Inclusion of Andhra in the top names of preferred destinations for investment in SDL bonds speaks volumes of the confidence that investor community has on the leadership in AP and on its ability to turn things around for the state.

Bihar sits at the other end of the spectrum, where market activity is limited compared with other state bonds, it added. SDLs are market borrowings by state governments. RBI co-ordinates the actual process of the securities sale.

SDLs are treated more as a generic asset class, with investors making limited differentiation on the quality of states’ performances. Ind-Ra noted that pricing in the SDL market is likely to be less generic with the diversification and deepening of markets and focus more on both credit quality and liquidity of states.

The rating agency said it has arrived at state rankings based on the market activity of the top 15 issuer states.



Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s