The timing and rate for the mop-up of funds, which will be done in phases by the company, is being finalised, said a spokesperson of the company.The premier rating agency Crisil has assigned `AA' rating to the proposed Rs 1,000 crore NCD programme, which indicates `High Safety'.

"The rating is based on the superior configuration of RPL's refinery enabling it to produce higher value added produce mix and thereby earn higher gross refining margins (GRMs), said the rating agency.

The large size of RPL's refinery has resulted in economies of scale. The tariff protection available to Indian refiners increases the GRMs, and its infrastructure includes a dedicated port and captive power generation, said the Crisil note.

The rating factors the strong parentage of RPL and its ownership by the Reliance group. The rating also derives comfort from RPL's healthy cash accruals for the first six months of 2000-01, its marketing tie up with the public sector oil companies for offtake of its entire production of controlled products and inhouse consumption of 25 per cent of its production. The rating is constrained at its current level by the inherent volatility in refining business adversely affecting the stability of GRMs, high gearing, moderate coverage rations and the relatively new operations of RPL, said the Crisil note on RPL.

Crisil has also withdrawn the `BBB+' rating assigned to the Rs 1,450 crore Triple Optionally Convertible Debenture. This withdrawal is on account of redemption of the instruments.

Crisil has also `reaffirmed' the rating assigned to the Rs 500 crore NCD (AAA), Rs 3,780 crore NCD (AAA), Rs 290 crore preference share issue (pfAAA), and Rs 1600 crore short-term debt programme (P1+) of Reliance Industries Ltd (RIL). All these rating indicates `Highest safety' and `Very strong'.

Crisil is of the view that the rating of RIL continues to reflect its business strengths. The highest safety category rating also factor in RIL's comfortable net-gearing level and high interest covering to provide a high degree of financial flexibility. Further, the management's experience in business and their project implementation records are factored favourably.

These strengths are partially offset by the cyclical nature of petrochemicals business. The profitability of RIL would be linked to movement in the international prices of its product and feedstock.

"Crisil rating applies to a particular debt obligation of the company and is not a rating for the company as a whole. The rating also does not constitute a recommendation to buy/sell or hold a particular security," the rating agency added.