CRISIL has assigned its 'AAA(SO)/Stable' rating to the Rs 10-billion non-convertible debenture (NCD) programme of Mahanagar Telephone Nigam (MTNL).

CRISIL's rating on the NCD programme of MTNL continues to reflect the strength of the credit enhancement provided by the comprehensive, unconditional, and irrevocable guarantee from the Government of India (GoI) through the Ministry of Communications and Information Technology, and the trustee-administered payment mechanisms.

CRISIL believes that GoI's guarantees for the NCD programmes of MTNL, together with the structured payment mechanism, will ensure that all repayment obligations of MTNL are met in a timely manner. GoI's guarantees for all the CRISIL-rated NCD programmes will remain unaffected by any infirmity or irregularity on the part of the MTNL to undertake any of its obligations under the NCD programmes.

The rating outlook on MTNL's NCD programmes reflects CRISIL's outlook on the credit quality of GoI, the guarantor to the rated debt.

Shares of the company gained Rs 0.28, or 1.99%, to settle at Rs 14.34. The total volume of shares traded was 583,417 at the BSE (Tuesday).