Indian structured finance transactions stable; 80 Japan CMBS downgraded in Q4-09: Fitch
11 Jan 2010
The performance of Indian structured finance transactions remained stable in Q409, with a total of 22 publicly rated tranches being affirmed in Q409, rating services agency Fitch Ratings said today.
"The stable performance of Fitch-rated Indian structured finance transactions continued in Q409. The affirmations of ABS and RMBS transactions are the result of low levels of default and increases in credit enhancement levels," said Jatin Nanaware, associate director in Fitch's Asia Pacific structured finance team.
Twelve of the affirmations during the quarter came from RMBS transactions originated by Citibank, N.A., HDFC Limited, or ICICI Bank Limited, while four came from auto loan ABS transactions originated by Shriram Transport Finance Company Limited. In all cases, credit enhancements have built up as the series amortise.
There has been little or no use of any credit enhancement and the performance of the underlying pools remained stable.
Six affirmations came from two single loan sell down transactions - Credit Asset Trust Series XLVII and Indian Loans Receivable Trust April II 2009. The rating actions followed Fitch's affirmations of the ratings of the underlying obligor, IBM India Pvt. Ltd., on 14 December 2009.
Majority of the Indian structured finance tranches were assigned Stable Outlooks, with about a hundred outstanding tranches having Stable Outlooks as at end of December 2009.