"The two debt programmes, Rs 80-crore and Rs 50-crore bonds from Konkan Railways, have both been rated `AAA(SO)' -- `triple A structured obligation'. This rating reflects the ability of the ministry of railways to meet the repayment obligations on the bonds," a Crisil release issued on Thursday said, adding that the KRC bond ratings take into account the support provided by the ministry of railways towards ensuring timely payment of interest and principal obligations on the rated instrument.

"The ministry has, through a letter of comfort undertaken to make funds available to KRC, ensured payment of all itsdebt obligations to the bond holders on the stipulated due dates in the event of KRC's failure to meet such obligations," Crisil said, adding that the rating also takes into account the proposed loan agreement to be entered into between KRC and the ministry, under the terms of which the ministry would extend ten year interest-free loans to KRC which would be provided for in the annual railwaybudget.

Meanwhile, Crisil has rated the Gujarat Electricity Board's Rs 500 crore non-convertible bonds (NCD) `A+(SO)', indicating adequate safety, based on the credit enhancement provided by Gujarat government in the form of a tripartite arrangement between the government, the board and the trustees of Gujarat Electricity Board, to ensure timely payment of interest and principal.

"The credit rating reflects the ability and willingness of Gujarat government to provide support to the state electricity board for its debt servicing requirements," Crisil said, adding that it also reflects the state government's low levelof indebtedness, buoyant revenue growth, well-defined industrial and investment policy and a resilient economic structure which has displayed above average economic growth in the past.

"The government's progress in implementation of the economic reforms agenda supported by the Asian Development Bank (ADB) has also been factored in the rating," Crisil said, adding that these factors are partly offset by the impact of the fifth pay commission on the fiscal position of the state and increase in debt servicing liabilities.

Meanwhile, a report on debt placements in the country released by Prime Database said that the mobilisation of funds through private placement of debt grew by 25 per cent in the year 1998-99 as compared to the previous fiscal. "A total of 204 institutions and corporates raised about Rs 38,933 crore during the 1998-99 fiscal compared to Rs 30,983 crore in the previous fiscal," Prime Database said.