The rating for a total amount of Rs 1,350 crore indicates high safety. The risk factors are modest and may vary slightly. "The protective factors are strong and prospects of timely payment of the principal and interest as per terms under adverse circumstances, as may be visualised, may alter the fundamental strength and affect the timely payment of principal and interest as per terms" said a release issued by Icra.

The bonds are to be serviced from the revenues from the sale of water and power and from activities such as tourism, pisciculture and horticulture.

The high safety of the bonds has been achieved through credit enhnacements and a structured payment mechanism. While the primary responsbility to service the bonds vest with the cooperations individually, Government of Maharastra (GoM) plans to make budgetary provision every year for interest/principal repayments on the bonds apart from providing an unconditional and irrevocable gurantee for the same during the entire tenure.

Besides these bonds are also supported by an escrow on the receivables from the sale of water and electricity of the corporations. The finances of the goverment of Maharastra (GoM) enjoy long term sub-sovereign rating of LAA from Icra. The rating of GOM finances reflects the advantage Maharashtra had of strating off with big lead in its economy and Govermnet finance that has been maintained over the past three decades.

It also takes note of the strong structural factors of the state and relatively greater resilience of the GOM to absorb external shocks arising from the changes in general economic conditions.

Meanwhile, Icra has assigned an A1+ rating to Rs 38-crore short term debt programme of SBI Factors and Commercial Services Ltd and another A1+ to the commercial paper programme of the Associated Cement Company Ltd.