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| Transaction |
PTC/ Assignment |
Issue Size (Rs. Mn) |
Rating/Credit Opinion |
| Assignment of Receivables – December 2005 |
Acquirer’s Payouts |
3130.2 |
AAA(so) Equivalent (Reaffirmed) |
| Liquidity Facility |
8.0 |
AAA(so) Equivalent (Reaffirmed) |
| Second Loss Facility |
96.2 |
AAA(so) Equivalent [Upgraded from ‘AA(so)’ Equivalent] |
| Assignment of Receivables – February 2006 |
Acquirer’s Payouts |
5548.2 |
AAA(so) Equivalent (Reaffirmed) |
| Liquidity Facility |
81.0 |
AAA(so) Equivalent (Reaffirmed) |
| Second Loss Facility |
174.0 |
AAA(so) Equivalent [Upgraded from ‘AA(so)’ Equivalent] |
| Retail Trust August 2006 |
Series A4 |
78.6 |
AAA(so) (Reaffirmed) |
| Series A5 |
70.4 |
AAA(so) (Reaffirmed) |
| Liquidity Facility |
48.8 |
AAA(so) Equivalent (Reaffirmed) |
| Second Loss Facility |
132.6 |
AA+(so) Equivalent [Upgraded from ‘A(so)’ Equivalent] |
CRISIL has upgraded its credit opinion on the second loss facilities (SLFs) in the above-mentioned assignment transactions to ‘AAA(so)’ equivalent from ‘AA(so)’ equivalent. CRISIL has also upgraded its credit opinion on the SLF in the above-mentioned securitisation transaction to ‘AA+(so)’ equivalent from ‘A(so)’ equivalent. The credit opinion on the senior payouts and liquidity facilities, in all the three transactions, has been reaffirmed at ‘AAA(so)’ equivalent. These transactions are backed by receivables from car, two-wheeler, and commercial vehicle loans originated by HDFC Bank Ltd (HDFC Bank).
The upgrades are driven by an improvement in the coverage enjoyed by the SLFs on the back of strong collection performance, low utilisation of credit enhancement, and significant pool amortisation (refer Table – Performance summary of pools). The credit opinion on the SLFs is based on an ultimate payment structure: it should be paid off by the legal final maturity date of the transaction.
CRISIL believes that the available first loss facility provides adequate coverage from potential losses; the level of coverage provided is commensurate with the revised ratings. Continued strong collection performance of ‘Retail Trust August 2006’ could lead to a further upward movement in the rating for the SLF present in the transaction.
About the Bank
Incorporated in 1995, HDFC Bank offers a wide range of banking services, including commercial and transactional banking on the wholesale front, and branch banking on the retail front, with a focus on car finance, personal loans, commercial vehicle finance, and credit cards. The bank acquired Centurion Bank of Punjab in May 2008 and opened its first international branch in Bahrain in November 0408. For the quarter ended June 30, 2009, the bank reported a profit after tax of Rs.6.1 billion.
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| Table: Performance summary of pools (data as after September 2009 payouts) |
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| Parameter |
Assignment of Receivables – December 2005 |
Assignment of Receivables – February 2006 |
Retail Trust August 2006 |
| Asset Class |
Car (79%) and Commercial Vehicle (21%) |
Car (65%) and Two Wheeler (35%) |
Car (43%), Commercial Vehicle (27%) and Two Wheeler (30%) |
| Months post securitisation |
44 |
41 |
37 |
| Amortisation |
95.38% |
96.72% |
97.42% |
| Cumulative collection ratio |
99.24% |
99.16% |
98.34% |
| 90+dpd |
0.8% |
0.8% |
1.6% |
| First Loss Utilisation |
3.8% |
0.0% |
20.4% |
| Second Loss Utilisation |
0.0% |
0.0% |
0.0% |
| Total cash collateral as a percentage of future payouts/principal |
Fully Covered |
Fully Covered |
Fully Covered |
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Media Contacts
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Analytical Contacts
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CRISIL Rating Desk
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Mitu Samar
Head, Market Development & Communications
CRISIL Limited
Tel: +91-22- 6644 1838
Email: msamar@crisil.com
Tanuja Abhinandan
Market Development & Communications
CRISIL Limited
Tel: +91-22-6758 8046
Email: tabhinandan@crisil.com
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Ajay Dwivedi
Director - CRISIL Ratings
Tel: +91-22-6691 3097
Email: adwivedi@crisil.com
Prasad Koparkar
Head - CRISIL Ratings
Tel: +91-22-6691 3137
Email: pkoparkar@crisil.com
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Tel: +91-22-6691 3047 / 6691 3064
Email: CRISILratingdesk@crisil.com
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Note:
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CRISIL Complexity Levels are assigned to various types of financial instruments. The CRISIL Complexity Levels for the instruments featured in this document are available on www.crisil.com/complexity-levels. Investors are advised to refer to the CRISIL Complexity Levels for instruments that they propose to invest in. Investors can also call the CRISIL Helpline at +91 22 6691 3047 / + 91 22 66913064 with queries on specific instruments.
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