April 02, 2014
Mumbai
CRISIL assigns ‘CRISIL BBB (SO)’ for Series A PTCs issued by CEDAR MFI TRUST 12

Details Structure Yield Terms Pool principal (Rs. Million) Amount (Rs. Million) Tenure (Months) # Cash collateral (Rs. Million) Rating
Series A PTCs Par with EIS Fixed 150.1 150.0 21 12.5* CRISIL BBB (SO)

#Actual tenure will depend on the level of prepayments in the pool, and on the exercise of the clean-up call option.
*Additionally, Rs. 7.1 million in the form of subordination of cash flows provide credit support to the Series A PTCs

CRISIL has assigned its ‘CRISIL BBB (SO)’ rating to the Series A pass-through certificates (PTCs), issued by CEDAR MFI TRUST 12 (referred to, herein, as the trust), which is settled by GDA Trusteeship Ltd (GTL). The PTCs are backed by microfinance loan receivables originated by ESAF Microfinance and Investments Pvt Ltd (EMFIL).

The ratings are based on the credit quality of the pool cash flows, the origination and servicing capabilities of EMFIL, the credit support available for the PTCs, the payment mechanism for the transaction, and the soundness of the transaction’s legal structure.

The transaction has a ‘par’ structure and GTL will be appointed as a trustee to monitor the overall transaction on behalf of the PTC holders. EMFIL will continue to service the pool contracts as the servicing agent.

The pool cash flows being securitised comprise receivables from microfinance loans originated by EMFIL. The pool has a weighted average net seasoning of 27.7 weeks, with the top state (Kerala) constituting 57.3 per cent of the pool principal outstanding. The average original ticket size of the pool is Rs.13,279. All the contracts in the pool are current on payment as of the cut-off date.

Rated pools
CRISIL has outstanding ratings on two pools originated by EMFIL. The performance of the pools is in line with CRISIL’s expectations.

About the Originator
EMFIL is a non-deposit taking non banking financial company (NBFC-ND) microfinance institution registered with the Reserve Bank of India. The company was acquired by the current owners in 2007, to take over the microfinance services of the erstwhile Evangelical Social Action Forum (ESAF), a non-government organisation (NGO) established in 1992 by a group of individuals, with a common objective of working for the poor and marginalised sections of the society. EMFIL extends loans to women and follows the joint-liability group lending model. The company’s operations are concentrated in Kerala. EMFIL had around 153 branches across 33 districts in Kerala, Maharashtra, Tamil Nadu, Chhattisgarh and Madhya Pradesh, and over 0.41 million borrowers, as of July 2013.

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Last updated: May, 2013

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April 02, 2014

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