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RPT-Fitch Affirms Platinum Trust 2013 at 'BBB-sf'; Outlook Stable
May 19, 2014 / 9:06 AM / 3 years ago

RPT-Fitch Affirms Platinum Trust 2013 at 'BBB-sf'; Outlook Stable

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May 19 (Reuters) - (The following statement was released by the rating agency)

Fitch Ratings has affirmed the Class A2 and A3 notes of Platinum Trust 2013 at ‘BBB-sf’. The transaction is a securitisation of auto loans in India originated by Cholamandalam Investment and Finance Co. Ltd (CIFCL).

The rating actions are as follows:

INR 933.6m class A2 notes due April 2017 affirmed at ‘BBB-sf’; Outlook Stable INR 600.5m class A3 notes due April 2017 affirmed at ‘BBB-sf’; Outlook Stable

KEY RATING DRIVERS

The affirmations reflect the steady build-up of credit enhancement (CE) and stable portfolio performance with low delinquencies and defaults since closing in January 2013. Fitch expects the operating environment in India to continue to support the underlying ABS transactions, despite economic uncertainties. The 90+ day delinquencies rate has stabilised since November 2013 and was last reported at 2.48% of the original pool balance. The arrears have yet to materialise into substantial losses as the first loss credit facility (FLCF) has not been drawn since closing. The FLCF, which is 24.3% of the portfolio as at April 2014, continues to provide an increasing percentage of credit support as the transaction pays down.

RATING SENSITIVITIES

Fitch evaluated the rating sensitivities under an increased default rate scenario, leaving recovery rates, time to recovery and prepayment rates unchanged. An increase of the base-case default rate by 39% may lead to a downgrade of the rated notes.

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