An Icra release issued in Mumbai on Friday said that the risk factors associated with IDFC's debt programme are negligible, and added that there may be circumstances adversely affecting the degree of safety --"however, these circumstances are not likely to affect the timely pament of principal and interest," Icra said.

IDFC was set up in 1997 to fund the infrastructure sector and is perceived to carry strong sovereign support. "However, the infrastructure sector is fraught with risks because of lack of clear policy guidelines and IDFC's asset risk would therefore depend largely on policy reforms," Icra said, adding that the financial institution's decision to fund projects with strong sponsor support and low backward and forward linkages would mitigate some of the policyside risks.

"IDFC had already provided for stringent operating `constructs' in the shareholders's agreement which would enable it to control operating risks substantially. On the funding side, IDFC's ability to mobilise long term funds for proper asset liability management would be crucial, but, its large capital base of Rs 1000 crore, authority to issue permitted securities and the sovereign backing are significant mitigating factors," Icra said.

Meanwhile, Credit Rating Information Services of India Limited (Crisil) has assigned an `AA' rating to the Rs 25 crore non-convertible debenture (NCD) issue of Tube Investments of India Ltd (TI). The rating agency has also assigned a `P1+' rating to the Rs 65 crore short term debentures of Xerox Modicorp Ltd (XMC).

"Crisil has reaffirmed a `P1' rating to the Rs 75 crore commercial programme of TI and has upgraded the `AA-' and `FAA' ratings assigned to Rs 32.91 crore NCD issues and fixed deposit programme of TI to `AA' and `FAA+' respectively," a Crisilrelease issued in Mumbai said, adding that the upward revision reflects the benefits which would accrue to TI due to the cost cutting measures, improvement in market position on account of strategic outsourcing of both tubes and cycles and the company's favourable capital structure and its strong financial flexibility as part of the Murugappa group.

"Xerox corporation, USA's demonstarted management and ownership support to the venture and XMC's plans to merge Modi Xerox Ltd and Modi Xerox Financial Services Ltd have been given due consideration in XMC's rating," Crisil said.