Detailed Rationale Crisil Ratings has converted the provisional rating assigned to Series A1 Pass-Through Certificates (PTCs) and Equity Tranche issued by ‘Cassandra 01 2025’ under a securitization transaction originated by originated by Si Creva Capital Services Private Limited (‘Si Creva’; rated ‘Crisil BBB+/Stable/Crisil A2+’) to a final rating of 'Crisil A (SO)' and ‘Crisil BBB+ (SO)’ respectively. This securitization transaction is backed by backed by a pool of personal loan receivables originated by Si Creva..
The ratings are based on credit enhancement available to support promised PTC payouts, the expected credit quality of the underlying pool, Si Creva’s origination and servicing capabilities, and the soundness of the transaction’s legal structure and payment mechanism.
Crisil Ratings has now received the final legal/executed documents for this transaction. These executed documents are in line with terms of the transaction envisaged when provisional rating was assigned. Hence, Crisil Ratings has converted the provisional rating to a final rating.
Legal Documents
Other Documents
Payment Structure : The transaction has a ‘par with monthly subordinated excess interest spread (EIS)’ structure, however in case of a trigger event, residual cashflows are being used to repay Series A1 PTC principal. The trust settled by the transaction’s Trustee, i.e. MITCON Credentia Trusteeship Services Limited has issued Series A1 PTC and Equity Tranche to investors in exchange for a purchase consideration equal to 89.0% and 4.5% of the pool principal at the time of securitization, respectively.
Series A1 PTC holders are promised timely interest payments on a monthly basis. Principal repayment, while expected on a monthly basis, is promised only on an ultimate basis by the instrument’s final maturity date. The investor payouts for PTCs are supported by cash collateral, subordination of equity tranche principal, subordination of overcollateral principal, and subordination of excess interest spread (EIS).
Equity Tranche is fully subordinated to the Series A1 PTC. Interest is not payable to Equity Tranche and principal payments are scheduled after Series A1 PTCs are fully paid. Principal repayment is promised only on an ultimate basis by the instrument’s final maturity date
On a monthly basis, the cash collateral shall be used to make the promised interest payments in case of a shortfall in collections from the pool to Series A1 PTC. On the Series A1 PTC final maturity date, the cash collateral can also be used to make the promised principal repayment in case of a shortfall in collections from the pool. After payment of Series A1 PTC in full, on the Equity Tranche Final Maturity Date, the cash collateral, up to the amount of cash collateral available, will be utilized to redeem the Equity Tranche PTC in case there is any shortfall in collections from the pool.
Crisil Ratings has estimated base case shortfalls in the pool at 10.0%-12.0% of cash flows. These shortfalls are further stressed to arrive at the rating of PTCs. The total credit enhancement available in the transaction (internal – in the form of equity tranche, overcollateralization and EIS; and external – in the form of cash collateral) provide loss absorption against stressed shortfalls in the pool, commensurate with the rating assigned to the PTCs.
Adequacy of credit enhancement Credit enhancement available in the transaction structure for Series A1 PTC is as below:
Crisil Ratings has run sensitivities based on various shortfall timing curves (front-ended, back-ended and normal) and has adequately factored the same in its analysis. |
Key Rating Drivers & Detailed Description Strengths:
Weaknesses:
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Liquidity: Strong for Series A1 PTCs, Adequate for Equity Tranche For Series A1 PTC: Liquidity is strong given that the credit enhancement available in the structure is sufficient to cover losses exceeding 1.5 times the base case shortfalls in the pool. The cash collateral available in the structure (INR 0.99 crore, 4.0% of the initial pool principal) would cover the first five months of promised interest payments even in case of no collections from the underlying pool.
For Equity Tranche: Liquidity is adequate given that the credit enhancement available in the structure is sufficient to cover losses exceeding 1.1 times the currently estimated base shortfalls. |
Rating Sensitivity factors Upward factors:
Downward factors:
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About the Pool The transaction is backed by receivables from a pool of unsecured personal loans originated by Si Creva. The pool’s key characteristics as of the cut-off date (15-January-2025) are outlined below:
About the Originator Si Creva is a systemically important non-deposit taking NBFC (ND-NBFC). The company commenced operations in 2018 and is a wholly owned subsidiary of OnEMI, which is the technology platform and is run under the brand name of Ring (erstwhile Kisshht). The group entity is promoted by Mr Ranvir Singh and Mr Krishnan Vishwanathan, who have a prior experience in the financial services and technology domain and is backed by strong private equity (PE) investors which include Vertex Growth, Brunie Investment Agency, Venture East, Sistema, Endiya and others.
The product offerings include unsecured personal loans with tenure of three months to thirty six months and a ticket size varying from Rs 5,000 – Rs 500,000. The group has also started loans against property (LAP) business recently in a branch-led model. |
Key Financial Indicators: (OnEMI Technologies Pvt Ltd, Consolidated)
*annualized; #provisional
Key financial indicators: (Si Creva Capital Services, Standalone)
*annualized; #provisional
Quality and experience of servicer: Si Creva rated ‘Crisil BBB+/Stable/Crisil A2+' will continue to service loans assigned to this trust.Si Creva has originated several securitisation transactions. Servicing has been done, and reports have been shared across all these transactions in a timely manner.
Risks and concerns for investors and mitigating factors: Based on Crisil Ratings’ assessment, the total credit enhancement available in the transaction (internal – in the form of EIS; and external – in the form of cash collateral) together can mitigate against shortfalls in collection from the pool even after stressing them commensurate with the rating assigned to the PTCs. Crisil Ratings has adequately factored key risks in the transaction including Credit & Market (as highlighted in rating assumptions section), Counterparty and Legal risks. Legal risks are assessed based on detailed analysis of transaction documentation. Risk factored from counterparties are mentioned in the table below:
Counterparty details
A summary of key terms of servicer contract
Provision for appointment of back-up servicer: The Trustee (acting on the instructions of the investors) as per the terms of the Servicer Agreement and upon the occurrence of Servicer’s Event of default, shall retain the right to appoint an alternate servicer
Performance of outstanding rated transactions Crisil Ratings has ratings outstanding on 9 securitisation transactions backed by Si Creva-originated loans as of Feb 2025 payout. The cumulative collection ratios in these pools have been volatile ranging from 86.0% to 100.0%. There has been no CC utilization
Any other information: Not Applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
#Indicates legal final maturity date for the instrument. Actual maturity date will depend on the level of collection shortfalls in the pool, the level of prepayments in the pool, and exercise of the clean-up call option. |
| Annexure - Rating History for last 3 Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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| All amounts are in Rs.Cr. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Criteria Details
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