Fitch Ratings has affirmed the International and National ratings of the Pass Through Certificates (PTCs) issued by Small Operator Trust 2008 and assigned Outlooks to Series A2 and A3, as follows:
- INR1,638.6m Series A2 affirmed at 'BBB-' (BBB minus); Outlook Stable;
- INR650.2m Series A3 affirmed at 'BBB-' (BBB minus); Outlook Stable;
- INR1,638.6m Series A2 affirmed at 'AAA(ind)SO)'; Outlook Stable;
- INR650.2m Series A3 affirmed at 'AAA(ind)(SO)'; Outlook Stable; and
- INR325.6m Second loss credit facility affirmed at 'BBB(ind)(SO)'; Outlook Stable.
The affirmations are based on the level of credit enhancement and the performance of the underlying collateral, which consists of loans extended by Shriram Transport Finance Company Limited (STFCL) for the purchase of new three wheeler commercial vehicles. As at February 2009, available credit enhancement totalled INR575.7m compared to the outstanding pool balance of INR2,065.3m.
According to the latest investor report, 0.01% loans were delinquent by more than 90 days and 56.6% of the original pool remains outstanding. The cumulative collection efficiency till February 2009 has been 99.6%, For the month of February in 2009, the overdue collection efficiency was 78.9% and the current collection efficiency was 95.7%.
Rating Outlooks have been published for all newly issued Asia Pacific Structured Finance tranches since June 2008, and concurrently with rating actions for tranches issued prior to June 2008. Unlike a Rating Watch which notifies investors that there is a reasonable probability of a rating change in the short term as a result of a specific event, rating Outlooks indicate the likely direction of any rating change over a one- to two-year period.
Note to editors: Fitch's National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated 'AAA' and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as 'AAA(ind)' for National ratings in India. Specific letter grades are not therefore internationally comparable.
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