AAA and AA are considered to be higher and safer than ‘A’ rating
elangana Chief Minister K Chandrasekhar Rao
Hyderabad: The Telangana government said that the state’s credit profile has improved after the bifurcation of the combined Andhra Pradesh.
“The ‘A’ rating with positive outlook indicates an improvement in the state’s credit profile as the combined Andhra Pradesh has got ‘A’ rating with negative outlook,” said a press release issued by the Telangana Chief Minister’s Office.
According to ICRA, the debt instruments with the ‘A’ rating are considered to have adequate degree of safety and carry low credit risk. AAA and AA are considered to be higher and safer than ‘A’ rating.
According to the Telangana government, the factors which helped the state get a better rating are a better per capita income, which is higher than the national per capita, a comparatively lesser debt burden, an improved tax collection, ease of doing business, a higher share of stable FDI in investment flow and improving irrigation facilities.
( Source : deccan chronicle )
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