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BRIEF-Fitch says Indian ABS buffers cover near-term demonetisation impact
November 30, 2016 / 5:40 AM / in a year

BRIEF-Fitch says Indian ABS buffers cover near-term demonetisation impact

Nov 30 (Reuters) -

* Indian abs buffers cover near-term demonetisation impact

* Demonetisation could lead to a short-term liquidity stress in indian auto abs transactions

* Short-term liquidity stress in Indian auto abs is likely to be limited to a few months

* High denomination currency withdrawal in India has created a cash crunch that Fitch expects to hold back economic activity in near term

* Expect liquidity squeeze in Indian auto ABS to result from substantial drop in collections from small commercial vehicle in November and Dec

* Expect cash crunch caused by demonetisation to affect both income of Indian commercial vehicle loan originators and repayment capabilities in short term

* Impact of demonetisation on economic activity could lead to a temporary drop in demand for services involving commercial vehicles in India

* Delinquencies are likely to remain high for several months in 2017 Source text for Eikon:

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