Details	Yield Terms	Issue Size (Rs. Million)	Tenure (Months)#	Credit Opinion	Credit-cum-Liquidity Enhancement (Rs. Million)*
Acquirer Payouts (Principal)	Fixed	4432.7	60	‘CRISIL AAA (SO) Equivalent’	578.1
Second-Loss Facility	-	364.4		‘CRISIL BBB (SO) Equivalent’	213.7

CRISIL has assigned its credit opinions equivalent to its ratings of ‘CRISIL AAA (SO)’ and ‘CRISIL BBB (SO)’ on the acquirer payouts and second-loss facility, respectively, under Shriram Transport Finance Company Ltd’s (STFCL’s; rated ‘CRISIL AA/FAA+/Stable/CRISIL A1+’) Assignment of Receivables December 2011 VI transaction.

The credit opinions are based on the credit quality of the pool cash flows, STFCL’s origination and servicing capabilities, credit-cum-liquidity enhancement and payment mechanism, and soundness of the transaction’s legal structure.

The receivables arise from a pool of new and used commercial vehicle (CV) and passenger vehicle loans originated by STFCL. The transaction is structured at ‘par’. STFCL will directly assign the pool to the acquirer, who will pay a purchase consideration equal to the pool principal at the time of assignment. The acquirer payouts receive support from the stipulated cash collateral and the excess interest spread (subordinated to the acquirer payouts).

About the Pool
The pool consists of both new and used vehicle loans; at least one monthly instalment has been paid for each of the loans. The seasoning of the pool is low, with a weighted average net seasoning of 1.6 months. The pool is geographically diversified, with the top three states in the pool together accounting for 36.0 per cent of its principal. All the contracts in the pool are current on payments as on pool cut-off date.

CRISIL has outstanding ratings/credit opinions on over 20 securitisation/assignment transactions backed by vehicle and construction equipment loan receivables originated by STFCL till date. The performance of all the pools is in line with CRISIL’s expectations.

About the Originator
STFCL, incorporated in 1979, is a part of the Shriram group of companies. The company is registered with the Reserve Bank of India as a deposit-taking, asset-financing, and non-banking financial company. STFCL predominantly finances purchase of CVs (both used and new), although it has also started financing purchase of tractors, passenger vehicles, earth-moving equipment, and large agricultural equipment, among others. The company has a pan-India presence, with 494 branches as on June 30, 2011.

For the year ended March 31, 2011, STFCL reported a total income and a profit after tax (PAT) of Rs.54.3 billion and Rs.12.3 billion, respectively, against Rs.45.0 billion and Rs.8.7 billion, respectively, for the year ended March 31, 2010. For the half year ended September 30, 2011, STFCL reported a total income and a PAT of Rs.29.3 billion and Rs.6.5 billion, respectively, against Rs.26.2 billion and Rs.5.9 billion, respectively, for the corresponding period of the previous year.