May 09, 2014
Mumbai
CRISIL assigns ‘CRISIL AAA (SO)’ to Series A1 PTCs and CRISIL AA (SO) to Series A2 PTCs issued by Nirmaan RMBS Trust – Series II – 2014

Transaction Name Details Structure Yield Terms Amount (Rs. Million) Tenure# (months) Rating (months) Credit-cum-Liquidity Support (Rs. Million)^ (months)
Nirmaan RMBS Trust – Series II - 2014 Series A1 PTCs Par with EIS Floating$ 1,122.5 313 CRISIL AAA (SO) 81.9
Series A2 PTCs Floating* 46.8 313 CRISIL AA (SO)& 81.9

#Indicates door-to-door tenure; actual tenure will depend on level of prepayments in the pool, and exercise of the clean-up call option
^Scheduled excess interest spread of Rs.354.6 million (assuming zero prepayments) also provides credit support to PTCs. Additionally, Series A2 PTCs’ principal is subordinated to Series A1 PTCs on month-on-month basis.
$Linked to the base rate of investor
*Linked to asset yield
&There is an expected schedule for principal repayments for Series A2 PTCs; however, the structure allows for principal payments to be made by maturity date of PTCs (ultimate payment structure)

CRISIL has assigned its ‘CRISIL AAA (SO)’ and ‘CRISIL AA (SO)’ ratings to the Series A1 and Series A2 pass-through certificates (PTCs), respectively, issued by Nirmaan RMBS Trust – Series II - 2014. The PTCs are backed by receivables against home loans originated by First Blue Home Finance Ltd (First Blue), now merged into Dewan Housing Finance Corporation Ltd (DHFL; rated ‘CRISIL A1+’).

The ratings are based on the credit quality of the pool cash flows, DHFL’s servicing capabilities, the transaction’s credit enhancement and payment mechanism, and the soundness of the transaction’s legal structure.

The receivables arise from a pool of home loan contracts assigned by DHFL. The transaction has a ‘par’ structure. DHFL will assign the pool to Nirmaan RMBS Trust – Series II - 2014, managed by IDBI Trusteeship Ltd, which will issue PTCs to investors.

About the Pool
The pool is geographically diversified with the top three states accounting for 56.7 per cent of the principal outstanding. The pool has a good seasoning profile (weighted average net seasoning of 33.1 months); all receivables in the pool are from contracts that are current on payment as on the pool cut-off date. The pool has a weighted average original tenure of 18.9 years and an average ticket size of Rs.1.25 million.

About Dewan Housing Finance Corporation Limited
Incorporated in 1984, DHFL primarily provides housing loans to individuals and offers loans against property to its housing loan customers. In October 2011, DHFL announced the merger of First Blue with itself; the latter will now operate as DHFL’s strategic business unit. DHFL has a pan-India presence, with customer touch points in 305 locations as on December 31, 2013.

DHFL reported a profit after tax (PAT) of Rs.3.9 billion on a total income of Rs.35.5 billion for December ending 2013-14 (refers to financial year, April 1 to March 31), against a PAT of Rs.4.5 billion and a total income of Rs.41.4 billion for the previous year.

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Last updated: May, 2013

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May 09, 2014

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