Fitch rates Agartala Municipal BB-(ind)

Fitch Ratings said it assigned a national long-term issuer rating of BB-(ind) to Agartala Municipal Council.

The outlook is stable.

The rating is constrained by the city's weak institutional structure and large gaps in its provision of civic services, Fitch said. This is coupled with its disadvantageous geographical location, adding to woes relating to economic under-development, the agency said.

Shrinking revenue surplus also could necessitate additional debt to fund operating expenditure, but the agency said it believes the company's debt-raising capacity is limited.

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