Key Rating Drivers & Detailed Description

Strengths:

• Credit support available in the structure
  • As after November 2021 payout, credit collateral covers 55.8% of the future PTC payouts, providing credit support to the PTCs. The PTCs also benefit from scheduled EIS amounting to 15.7% of future PTC payouts.

• Healthy Collection Metrics
  • The CCR is 97.5%. As of November 2021 payout, the 3-month average monthly collection efficiency was 108.5%.

Weakness:

• 37.5% of the pool principal are in 30+ PAR buckets.
• Uncertainty regarding the economic impact of pandemic on future collections
  • In the medium term, collections in the underlying pool could come under pressure, and create asset quality concerns. Consequently, the extent of disruption to collections due to pandemic-related factors continue to remain a key monitorable.

About the pool

The transaction is backed by receivables from a pool of car, commercial vehicle, construction equipment and tractor loan contracts. At the time of initial rating, contracts in the pool had a good seasoning profile as evidenced by a weighted average net seasoning of 9.9 months. Contracts in the pool were geographically concentrated with the top 3 states accounting for 45.0% of pool principal. The average ticket size for contracts in the pool was Rs 5.2 lakh, with a weighted average loan-to-value ratio of 78.9% at disbursement. The weighted average interest rate for contracts in the pool was 14.0%. All contracts were current on payment as of the pool cut-off date (February 28, 2019). CRISIL Ratings has adequately factored all these aspects in its rating analysis.

Pool Performance Summary (as after November 2021 payouts)

Counterparty details

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