April 06, 2016
Mumbai
CRISIL assigns provisional ratings to Series A PTCs issued by Sansar Trust March 2016 IV

Trust Details Structure Yield Terms Rated amount (Rs. Million) Pool Principal (Rs. Million) Tenure (months)# Credit-cum-Liquidity Enhancement (Rs. Million)^ Rating/ Credit Opinion
Sansar Trust March 2016 IV Series A PTCs Par with EIS Fixed 2,894.8 2,894.8 52 289.5* Provisional CRISIL AAA (SO)@
Second Loss Facility - 144.7 144.7 Provisional CRISIL A- (SO) Equivalent@

#Indicates door-to-door tenure between issuance date and legal final maturity date. Actual tenure will depend on level of prepayment in pool, exercise of clean-up call option, and extent of shortfall.
^Additionally, scheduled excess interest spread, amounting to around Rs.279.9 million (assuming zero prepayments), provides credit support to PTCs.
*Includes a second loss facility of Rs.144.7 million.
@A prefix of ‘provisional’ indicates that the rating centrally factors in the strength of specific structures, and will be supported by certain critical documentation by the issuer, without which the rating will either have been different or not assigned ab initio. This is in compliance with a May 6, 2015, Securities and Exchange Board of India (SEBI) directive, “Standardising the term, rating symbol, and manner of disclosure with regard to conditional/ provisional/in-principle ratings assigned by CRAs”.

CRISIL has assigned its ‘Provisional CRISIL AAA (SO)’ rating to the pass-through certificates (PTCs) and credit opinion of ‘Provisional CRISIL A- (SO) Equivalent’ to the second loss facility issued by Sansar Trust March 2016 IV. The pool is backed by commercial vehicle (CV) and passenger vehicle loan receivables originated by Shriram Transport Finance Company Ltd (STFCL; rated ‘CRISIL AA+/FAAA/Stable/CRISIL A1+’).

The rating on PTCs is based on the credit quality of pool cash flows, STFCL’s origination and servicing capabilities, transaction’s credit enhancement and payment mechanism, and soundness of the transaction’s legal structure.

The transaction has a ‘par’ structure. STFCL will assign the pool to Sansar Trust March 2016 IV, settled by IDBI Trusteeship Services Ltd, which will issue PTCs to investors. The PTCs receive support from the stipulated cash collateral and excess interest spread. Total credit support available in the transaction is as below:
• Opening overdue of Rs.17.6 million (0.5 per cent of cash flows)
• Internal credit support in the form of scheduled EIS, aggregating to Rs.279.9 million (8.0 percent of cash flows)
• External credit-cum-liquidity collateral of Rs.289.5 million (8.3 percent of pool cash flows) to be provided by STFCL

About the Pool
The pool mainly consists of used CV loans, which have a robust seasoning profile (weighted average net seasoning of 14.1 months). The pool is geographically diverse, with the top three states accounting for 39.6 percent of the principal. Moreover, 87.5 percent of the principal is from contracts that are current on payments as on the pool cut-off date, with a weighted average loan-to-value ratio of 61.9 percent and ticket size of Rs.0.32 million. This is a ‘provisional’ rating and will be converted into a ‘final’ rating based on receipt of the following documents:
•     Trust deed
•     Power of attorney
•     Information memorandum
•     Assignment agreement
•     Legal opinion
•     Trustee letter
•     Representations and warranties letter

Additional documents, if any, executed for a transaction should also be provided. A rating rationale/report indicating the conversion of the ‘provisional’ rating to ‘final’ post the receipt of all the required final legal documents will be published on the CRISIL website. Please click on the link below for detailed information on CRISIL’s policy on provisional rating: Revision in CRISIL policy for assigning ‘provisional’ rating.

Past Rated Pools
CRISIL has outstanding credit opinions/ratings on seven transactions originated by STFCL. Performance of all the pools is in line with CRISIL’s expectations

About the Originator
STFCL, incorporated in 1979, is the flagship company of the Shriram group. The company is registered with the Reserve Bank of India as a deposit-taking, asset-financing non-banking financial company. STFCL provides financing for vehicles such as CVs (both pre-owned and new), tractors, and passenger vehicles. It has pan-India presence, with 822 branches and 779 rural centers as on December 31, 2015.

STFCL reported a total income and a profit after tax (PAT) of Rs.42.1 billion and Rs.12.4 billion for 2014-15 (refers to financial year, April 1 to March 31), respectively, against Rs.38.8 billion and Rs.12.6 billion, respectively, for 2013-14. It reported a total income and a PAT of Rs.36.9 billion and Rs.10.3 billion, respectively, for the nine months ended December 31, 2015, against Rs.30.9 billion and Rs.9.2 billion, respectively, for the corresponding period of the previous year.

Media Contacts Analytical Contacts Customer Service Helpdesk
Tanuja Abhinandan
Media Relations
CRISIL Limited
Phone: +91 22 3342 1818
Email: tanuja.abhinandan@crisil.com

Jyoti Parmar
Media Relations
CRISIL Limited
Phone: +91 22 3342 1835
Email: jyoti.parmar@crisil.com
Krishnan Sitaraman
Senior Director - CRISIL Ratings
Phone: +91 22 3342 8070
Email: krishnan.sitaraman@crisil.com

Ajit Velonie
Director - CRISIL Ratings
Phone: +91 22 4097 8209
Email: ajit.velonie@crisil.com
Timings: 10.00 am to 7.00 pm
Toll free number: 1800 267 1301 Email: CRISILratingdesk@crisil.com

Note for Media:
This rating rationale is transmitted to you for the sole purpose of dissemination through your newspaper / magazine / agency. The rating rationale may be used by you in full or in part without changing the meaning or context thereof but with due credit to CRISIL. However, CRISIL alone has the sole right of distribution (whether directly or indirectly) of its rationales for consideration or otherwise through any media including websites, portals etc.

Note on complexity levels of the rated instrument:
CRISIL complexity levels are assigned to various types of financial instruments. The CRISIL complexity levels are available on www.crisil.com/complexity-levels. Users are advised to refer to the CRISIL complexity levels for instruments that they consider for investment. Users may also call the Customer Service Helpdesk with queries on specific instruments.


About CRISIL
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 part of CRISIL Limited (“CRISIL”). We pioneered the concept of credit rating in India in 1987. CRISIL is registered in India as a credit rating agency with the Securities and Exchange Board of India (“SEBI”).  With a tradition of independence, analytical rigour and innovation, CRISIL sets the standards in the credit rating business. We rate the entire range of debt instruments, such as, bank loans, certificates of deposit, commercial paper, non-convertible/convertible/partially convertible bonds and debentures, perpetual bonds, bank hybrid capital instruments, asset-backed and mortgage-backed securities, partial guarantees and other structured debt instruments. We have instituted several innovations in India in the rating business, including rating municipal bonds, partially guaranteed instruments and microfinance institutions. We pioneered a globally unique rating service for Small and Medium Enterprises (SMEs). We have significantly extended the accessibility to rating services to a wider market.

CRISIL PRIVACY NOTICE
CRISIL respects your privacy. We use your contact information, such as your name, address, and email id, to fulfil your request and service your account and to provide you with additional information from CRISIL and other parts of McGraw Hill Financial you may find of interest.

For further information, or to let us know your preferences with respect to receiving marketing materials, please visit www.crisil.com/privacy. You can view McGraw Hill Financial's Customer Privacy Policy at http://www.mhfi.com/privacy.

Last updated: August, 2014

DISCLAIMER
This disclaimer forms part of and applies to each credit rating report and/or credit rating rationale that we provide (each a “Report”).  For the avoidance of doubt, the term “Report” includes the information, ratings and other content forming part of the Report.  The Report is intended for the jurisdiction of India only. This Report does not constitute an offer of services.  Without limiting the generality of the foregoing, nothing in the Report is to be construed as CRISIL providing or intending to provide any services in jurisdictions where CRISIL does not have the necessary licenses and/or registration to carry out its business activities referred to above.  Access or use of this Report does not create a client relationship between CRISIL and the user.

We are not aware that any user intends to rely on the Report or of the manner in which a user intends to use the Report.  In preparing our Report we have not taken into consideration the objectives or particular needs of any particular user.  It is made abundantly clear that the Report is not intended to and does not constitute an investment advice. The Report is not an offer to sell or an offer to purchase or subscribe for any investment in any securities, instruments, facilities or solicitation of any kind or otherwise enter into any deal or transaction with the entity to which the Report pertains. The Report should not be the sole or primary basis for any investment decision within the meaning of any law or regulation (including the laws and regulations applicable in the US). 

Ratings from CRISIL Rating are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold, or sell any securities / instruments or to make any investment decisions.  Any opinions expressed here are in good faith, are subject to change without notice, and are only current as of the stated date of their issue.  CRISIL assumes no obligation to update its opinions following publication in any form or format although CRISIL may disseminate its opinions and analysis.  CRISIL rating contained in the Report is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment or other business decisions.   The recipients of the Report should rely on their own judgment and take their own professional advice before acting on the Report in any way.

Neither CRISIL nor its affiliates, third party providers, as well as their directors, officers, shareholders, employees or agents (collectively, “CRISIL Parties”) guarantee the accuracy, completeness or adequacy of the Report, and no CRISIL Party shall have any liability for any errors, omissions, or interruptions therein, regardless of the cause, or for the results obtained from the use of any part of the Report.  EACH CRISIL PARTY DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall any CRISIL Party be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of any part of the Report even if advised of the possibility of such damages.

CRISIL Ratings may receive compensation for its ratings and certain credit-related analyses, normally from issuers or underwriters of the instruments, facilities, securities or from obligors. CRISIL’s public ratings and analysis as are required to be disclosed under the regulations of the Securities and Exchange Board of India (and other applicable regulations, if any) are made available on its web sites, www.crisil.com (free of charge).  Reports with more detail and additional information may be available for subscription at a fee – more details about CRISIL ratings are available here: www.crisilratings.com.

CRISIL and its affiliates do not act as a fiduciary. While CRISIL has obtained information from sources it believes to be reliable, CRISIL does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives and / or relies in its Reports.

CRISIL keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of the respective activity. As a result, certain business units of CRISIL may have information that is not available to other CRISIL business units. CRISIL has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.  CRISIL has in place a ratings code of conduct and policies for analytical firewalls and for managing conflict of interest.  For details please refer to:  http://www.crisil.com/ratings/highlighted-policy.html

CRISIL’s rating criteria are generally available without charge to the public on the CRISIL public web site, www.crisil.com.  For latest rating information on any instrument of any company rated by CRISIL you may contact CRISIL RATING DESK at CRISILratingdesk@crisil.com, or at (0091) 1800 267 1301.

This Report should not be reproduced or redistributed to any other person or in any form without a prior written consent of CRISIL.

All rights reserved @ CRISIL

April 06, 2016

http://www.crisil.com