Dewan Housing Finance Corporation Limited

April 23, 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 V - 2014

Transaction Name Details Structure Yield Terms Amount (Rs. Million) Tenure (months)^# Rating Credit-cum-Liquidity Support (Rs. Million)^{^}
Nirmaan RMBS Trust – Series V - 2014 Series A1 PTCs Par with EIS Floating^$ 2,850.1 300 CRISIL AAA (SO) 228.6
Series A2 PTCs Floating^* 118.8 300 CRISIL AA (SO)^& 228.6

^$Linked to the base rate of investor; terms of the yield will be reset after five years
^*Linked to asset yield
^#Indicates door-to-door tenure; actual tenure will depend on level of prepayments in the pool and exercise of the clean-up call option
^{^}Additionally, scheduled excess interest spread amounting to Rs.807.0 million (assuming zero prepayments) also provides credit support to PTCs. Series A2 PTCs’ principal is subordinated to the Series A1 PTCs on a month-on-month basis.
^&There is an expected schedule for principal repayments for Series A2 PTCs; however, the structure allows for principal payments to be made by the maturity date of the 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 V - 2014. The PTCs are backed by receivables against home loans originated by Dewan Housing Finance Corporation Ltd (DHFL; rated ‘CRISIL A1+’).

The ratings are based on the credit quality of the pool cash flows, DHFL’s origination and 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 originated by DHFL. The transaction has a ‘par’ structure. DHFL will assign the pool to Nirmaan RMBS Trust – Series V - 2014, managed by IDBI Trusteeship Ltd, which will issue PTCs to investors.

About the Pool
The pool is geographically concentrated with Maharashtra accounting for 67.0 per cent of the principal outstanding. The pool has a moderate seasoning profile (weighted average net seasoning of 17.7 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 18.4 years and an average ticket size of Rs.1.5 million.

About the Originators
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 its merger with First Blue Home Finance Ltd; 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 on a total income of Rs.41.4 billion for the previous year

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Last updated: May, 2013

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April 23, 2014	http://www.crisil.com