ICRA keeps rating of Maharashtra Film.
BANKING AND CREDIT NEWS-30 August 2010-ICRA keeps rating of Maharashtra Film(C)1994-2010 M2 COMMUNICATIONS http://www.m2.com
30 August 2010 - Indian credit rating agency ICRA kept Friday at LBBB- (SO) the rating on the INR17.8m (USD380,000/EUR299,000) bond issue of local Maharashtra Film, Stage and Cultural Development Corp Ltd (MFSCDC).
The rating primarily reflects the intrinsic credit quality of the state government of Maharashtra (GoM) as well as the company's adherence to the ICRA stipulated structure conditions for servicing the rated bonds. The rating is supported by an unconditional and irrevocable guarantee towards payment of interest and principal from GoM.
However, the rating is constrained by the non-compliance of MFCDC with the structured payment mechanism stipulated by ICRA. This, however, did not result in any delay in the actual debt service by the company. ICRA would continue to monitor MFCDC's compliance with its structure conditions and take appropriate rating action, if material deviations from them are observed in the future.
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