Transaction Name	Details	Structure	Yield Terms	Amount (Rs. Million)	Tenure (Months)#	Credit Opinion *	Credit-cum-Liquidity Support (Rs. Million)^
Mahindra Finance Assignment of Receivables February 2012	Acquirer Payouts	Par	Fixed	5,643.6	58	CRISIL AA+ (SO) Equivalent	550.5

CRISIL has assigned its credit opinion equivalent to its ‘CRISIL AA+(SO)’ rating to the acquirer’s payouts under Mahindra and Mahindra Financial Services Ltd’s (Mahindra Finance’s; rated ‘CRISIL AA+/FAAA/ Stable/ CRISIL A1+’) Assignment of Receivables – February 2012 transaction. The credit opinion is based on the credit quality of the pool cash flows, Mahindra Finance’s origination and servicing capabilities, the transaction’s credit enhancement and payment mechanism, and the soundness of the transaction’s legal structure. The credit enhancement is in the form of a corporate guarantee undertaking from Mahindra Finance.

The receivables arise from a pool of loans for new tractors originated by Mahindra Finance. The transaction has a ‘par’ structure. Mahindra Finance will assign the pool to the acquirer, at a purchase consideration equal to the pool principal outstanding at the time of assignment. The excess interest spread (EIS) will be held in trust by Mahindra Finance and will be used to fund future shortfalls.

About the Pool
The pool is geographically diversified, with the top three states together accounting for 56.5 per cent of the principal outstanding. The pool has a moderate seasoning profile (weighted average net seasoning of 7.7 months), and 92.1 per cent of the receivables in the pool are from contracts that are current on payment as on the pool cut-off date. The pool has a moderate proportion of long-tenure contracts: the weighted average original tenure is 43.7 months. The pool has a moderate ticket size of Rs.0.33 million.

Past-Rated Pools
CRISIL has outstanding rating on 1 assignment transaction backed by tractor loan receivables originated by Mahindra Finance till date. The performance of the pool is in line with CRISIL’s expectations.

About the Originator
Mahindra Finance, was promoted by (Mahindra & Mahindra) and Kotak Mahindra Bank Ltd (formerly, Kotak Mahindra Finance Ltd [KMFL]), with M&M as the major shareholder. In 1998, Mahindra Finance became a subsidiary of M&M after the latter bought KMFL’s stake. M&M owned 56 per cent of Mahindra Finance’s equity capital as on September 30, 2011. Mahindra Finance finances consumer purchases of UVs, LCVs, tractors, cars, and other assets. To leverage its extensive branch network and rural customer base, the company has entered into the rural housing finance business through its subsidiary, Mahindra Rural Housing Finance Ltd (MRHFL). Mahindra Insurance Brokers Ltd (MIBL) is the insurance broking arm of Mahindra Finance and provides insurance broking services in life and non-life segments.

Mahindra Finance reported a total income and a net profit of Rs.12.7 billion and Rs.2.4 billion respectively for the half year ended September 30, 2011, against a total income and a net profit of Rs.9.1 billion and Rs.2.0 billion respectively for the previous year.