Fitch Ratings has assigned a final rating of 'F1+(ind)(SO)' to Class A Pass Through Certificates (PTCs) issued by an SPV called Credit Asset Trust Series LXIII. The transaction is a securitisation of receivables from a short-term loan maturing on 14 December 2009.
The PTCs' final rating reflects the credit quality of the underlying obligor - Vodafone Essar Cellular Limited (VECL or the "obligor") and the guarantors, the payment structure of the PTCs and the legal and financial structure of the transaction. The final rating addresses the timely payment of interest and the timely payment of principal by the final maturity date of 16 December 2009, in accordance with the transaction documentation.
The SPV purchased the receivables from Hongkong and Shanghai Banking Corporation Limited (HSBC or "the originator" or "the seller") in trust for the benefit of the PTC investors. After acquiring the receivables, the SPV issued PTCs to the investors, for a total consideration equivalent to the value of the discounted cash flows from the loan. The issue proceeds were used by the SPV to pay HSBC the purchase consideration.
The loan aggregates to INR1750m and was extended by HSBC to VECL. The underlying loan to VECL is cross guaranteed by group companies of Vodafone Essar Limited. The rating of the PTCs is directly linked to Fitch's internal credit view of the underlying obligor and the guarantors, which is sufficient to assign the PTCs a final rating of 'F1+(ind)(SO)'.
A new issue report for this transaction will be available shortly on Fitch's India website, www.fitchindia.com.
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.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
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