CRISIL has assigned a credit rating of ‘P1+(so)’ to Class A pass through certificates (PTCs) issued by Credit Asset Trust Series XLIV (CATS XLIV). The PTCs are backed by receivables arising out of redeemable preference shares amounting to Rs.150 million (rated ‘P1+’ by CRISIL), issued by Thomas Cook (India) Ltd (TCIL). The ’P1+(so)’ rating indicates that the degree of safety regarding timely payment on the instrument is ‘very strong’. A ‘P1+(so)’ rating is valid for instruments with tenure of one year or less.

The rating is based on the credit quality of the underlying receivables from TCIL, the payment mechanism and transaction structure that are designed to ensure timely payment of obligations on the PTCs, and the soundness of the transaction’s legal structure.

The redeemable preference shares carry a dividend of 1per cent, and are redeemable on maturity at a premium of 10per cent. The receivables from these shares have been assigned to CATS XLIV, which, in turn, has issued the PTCs that have a tenor of 293 days. IL&FS Trust Company Ltd is the trustee to the transaction. The transaction is based on a ‘premium’ structure, where the trust pays an amount equal to the discounted value of the receivables to the seller. At the end of 293 days, the PTCs will be redeemed out of payment made against the shares by TCIL.

About the company
TCIL is a subsidiary of Thomas Cook UK through TCIM Ltd; all these companies are a part of Thomas Cook Group Plc. The company operates in the foreign exchange (forex) and travel services businesses. Following the acquisitions of LKP Forex and TCI in 2006, TCIL now has 196 branches across 56 cities; these include 11 overseas offices. The company reported a profit after tax (PAT) of Rs.305 million for the nine months ended September 2007, as against a PAT of Rs.359 million for 14 months ended December 2006.