Fitch Ratings-Mumbai/Singapore-22 April 2009: Fitch Ratings has assigned final ratings of 'F1+(ind)(SO)' to Series C1 and Series C2 Pass Through Certificates (PTCs) issued by an SPV called Corporate Loan Securitisation Series (CLSS) XXVI Trust 2006. The transaction is a securitisation of receivables from a term loan maturing on 27 December 2009.
The final ratings of the PTCs reflect the credit quality of the underlying obligor - Shriram Transport Finance Co. Ltd. (STFCL or "the obligor"), the payment structure of the PTCs and the legal and financial structure of the transaction. The final ratings also address the timely payment of interest and the timely payment of principal by the final maturity date of 29 December 2009, in accordance with the transaction documentation.
The SPV had purchased the receivables from Kotak Mahindra Bank Limited (KMBL or "the originator" or "the seller") in trust for the benefit of the PTC investors. The SPV issued Series C1 and C2 PTCs, for a total consideration equivalent to the value of the discounted cash flows from the loan, which will be utilised for the repayment of Series B PTCs issued earlier.
The loan aggregates to INR500m and is extended by KMBL to STFCL. The ratings of the PTCs are directly linked to the rating of the underlying obligor, STFCL, for which Fitch maintains a short-term rating of 'F1+(ind)'.
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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