| Instrument Details |
Yield Terms |
Original Principal (Rs. Million)
| Original Tenure#(Months) |
Rating$
|
| Series A1 PTCs |
Fixed |
312.8
| 12 |
P1+(so) [Reaffirmed]
|
| Series A2 PTCs |
Fixed |
81.8
| 19 |
AAA(so) [Upgraded from ‘AA(so)’]
|
| Series A3 PTCs |
Residual |
86.6
| 19 |
A-(so) [Upgraded from ‘BBB(so)’]
|
| Cash Collateral |
- |
54.7
| 19 |
Unrated
|
^As after May 2010 payouts
#Actual tenure will depend on the level of prepayments in the pool, and on the exercise of the clean-up call option
$The Series A1 and the Series A2 PTCs are entitled to receive interest on a fortnightly basis. There is an expected schedule for principal repayments for the Series A1, A2 and A3, however the structure allows for principal payments to be made by the maturity date of the PTCs (“Ultimate payment structure”)
CRISIL has upgraded its ratings on the Series A2 pass-through certificates (PTCs) issued by IFMR Trust Pioneer – II to ‘AAA(so)’ from ‘AA(so)’ and on the Series A3 PTCs to ‘A-(so)’ from ‘BBB(so)’; the PTCs are backed by microfinance loan receivables originated by Equitas Micro Finance India Pvt Ltd (Equitas; rated ‘BBB/Stable’ by CRISIL). The rating on Series A1 PTCs has been reaffirmed at ‘P1+(so)’.
The rating upgrades reflect the increased coverage that the transaction’s credit enhancement provides to the PTCs as a result of the strong collection performance. Continued strong collection performance of the underlying pool could lead to a further upgrade in the rating for the Series A3 PTCs.
Pool Performance summary (as per May 2010 payout report)
| Parameters |
IFMR Trust Pioneer II |
| Asset class |
Microfinance loan receivables |
| Months after securitisation |
7 |
| Amortisation |
41.4 per cent |
| Cash collateral stipulated at the time of securitisation (percentage of initial pool cashflows) |
10.6 per cent |
| Cash Collateral |
0.0 per cent |
| Cumulative collection ratio |
99.9 per cent |
| Average monthly collection ratio over last three months |
99.8 per cent |
| 30+ Delinquency# |
0.1 per cent |
| 90+ Delinquency^ |
0.0 per cent |
#30+ delinquency = (Overdues + Principal outstanding of contracts overdue for more than 30 days + Repossession losses) ÷ Initial pool principal
^90+ delinquency = (Overdues + Principal outstanding of contracts overdue for more than 90 days + Repossession losses) ÷ Initial pool principal
About the Originator
Set up in 2007 by Mr. P N Vasudevan, Mr. M Anandan, and Mr. V P Nandakumar, Equitas (formerly UPDB Micro Finance Pvt Ltd) is a non-deposit-taking non-banking financial company registered with the Reserve Bank of India. The company is a microfinance institution, lending to women organised into joint-liability groups. Equitas had cumulative disbursements of Rs.9.6 billion until March 31, 2010. It had 163 branches, with more than 888,600 borrowers, and a portfolio outstanding (based on assets under management) of Rs.6.05 billion as on March 31, 2010. As on this date, the promoter, Mr. P N Vasudevan and his relatives and associates, together held 15.5 per cent stake in Equitas; the stake has come down from 53 per cent in October 2008 because the company has issued shares to new institutional investors, and also because the existing institutional investors have converted their preference shares into equity.
Equitas reported a profit after tax (PAT) of Rs.228.7 million on a total income Rs.1.24 billion for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of Rs.22.1 million on a total income of Rs.349.7 million for the previous year.
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Media Contacts
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Analytical Contacts
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CRISIL Rating Desk
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