April 07, 2014
Mumbai
CRISIL assigns ‘CRISIL AAA (SO)’ to PTCs issued by Indian Receivable Trust 14

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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About CRISIL Limited
CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services. We are India's leading ratings agency. We are also the foremost provider of high-end research to the world's largest banks and leading corporations.

About CRISIL Ratings
CRISIL Ratings is India's leading rating agency. We pioneered the concept of credit rating in India in 1987. With a tradition of independence, analytical rigour and innovation, we have a leadership position. We have rated over 60,000 entities, by far the largest number in India. We are a full-service rating agency. We rate the entire range of debt instruments: bank loans, certificates of deposit, commercial paper, non-convertible debentures, bank hybrid capital instruments, asset-backed securities, mortgage-backed securities, perpetual bonds, and partial guarantees. CRISIL sets the standards in every aspect of the credit rating business. We have instituted several innovations in India including rating municipal bonds, partially guaranteed instruments and microfinance institutions. We pioneered a globally unique and affordable rating service for Small and Medium Enterprises (SMEs).This has significantly expanded the market for ratings and is improving SMEs' access to affordable finance. We have an active outreach programme with issuers, investors and regulators to maintain a high level of transparency regarding our rating criteria and to disseminate our analytical insights and knowledge.

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Last updated: May, 2013

Disclaimer: A CRISIL rating reflects CRISIL's current opinion on the likelihood of timely payment of the obligations under the rated instrument and does not constitute an audit of the rated entity by CRISIL. CRISIL ratings are based on information provided by the issuer or obtained by CRISIL from sources it considers reliable. CRISIL does not guarantee the completeness or accuracy of the information on which the rating is based. A CRISIL rating is not a recommendation to buy, sell, or hold the rated instrument; it does not comment on the market price or suitability for a particular investor. All CRISIL ratings are under surveillance. Ratings are revised as and when circumstances so warrant. CRISIL is not responsible for any errors and especially states that it has no financial liability whatsoever to the subscribers / users / transmitters / distributors of this product. CRISIL Ratings’ rating criteria are available without charge to the public on the CRISIL web site, www.crisil.com. For the latest rating information on any instrument of any company rated by CRISIL, please contact CRISIL RATING DESK at CRISILratingdesk@crisil.com, or at (+91 22) 3342 3000.

April 07, 2014

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