Transaction Name |
Details |
Structure
|
Yield Terms
|
Amount
(Rs. Million)
|
Tenure
(months)
#
|
Rating
|
Credit-cum-Liquidity Support (Rs. Million)
^
|
Indian Receivable Trust 14
|
Series A PTCs
|
Par |
Floating$ |
1,150.0 |
212
|
CRISIL AAA (SO)
|
150.6
|
$Linked to the base rate of investor
#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 (EIS), amounting to Rs.346.8 million (assuming zero prepayments), also provides credit support to Series A PTCs
CRISIL has assigned its ‘CRISIL AAA (SO)’ rating to the pass-through-certificates (PTCs) issued by Indian Receivable Trust 14. The PTCs are backed by receivables against loans against property originated by Reliance Capital Ltd (RCL; rated ‘CRISIL A1+’).
The rating is based on the credit quality of the pool cash flows, RCL’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 loan-against-property contracts originated by RCL. The transaction has a ‘par’ structure. RCL will assign the pool to Indian Receivable Trust 14, managed by IDBI Trusteeship Ltd, which will issue PTCs to investors.
About the Pool
The pool is geographically diversified, with the top three states together accounting for 55.0 per cent of the principal outstanding. The pool has a good seasoning profile (weighted average net seasoning of 27.4 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 low proportion of long-tenure contracts: the weighted average original tenure is around 12 years. The pool has an average ticket size of Rs.2.8 million and the top 10 borrowers constitute 9.8 per cent of the pool principal.
Rated Pools
CRISIL has outstanding credit opinions/ratings on four assignment/securitisation transactions backed by receivables against home loans and loans against property originated by RCL and Reliance Home Finance Pvt Ltd (RHFPL, a wholly owned subsidiary of RCL) as on date. The performance of the rated pools is in line with CRISIL’s expectations.
About the Originator
Established in 1986, RCL is a systemically important non-deposit-taking non-banking financial company. RCL is a part of the Reliance group, and is currently the holding and operating company for group entities which provide financial services. RCL, along with its subsidiaries and associates, has interests across the financial services spectrum, including asset management, mortgage and commercial finance, capital markets, and general insurance and life insurance.
RCL reported a total income and a profit after tax (PAT) of Rs.74.7 billion and Rs.7.0 billion, respectively, for 2012-13 (refers to financial year, April 1 to March 31), vis-à-vis Rs.65.8 billion and Rs.3.3 billion, respectively, for 2011-12. For the nine months ended December 31, 2013, the company reported a total income and a PAT of Rs.56.7 billion and Rs.4.4 billion, respectively.
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