Fitch Rates PTCs to be issued by Indian Infrastructure Equipment Receivable Trust July 2009

Fitch Ratings has assigned expected ratings and Loss Severity (LS) ratings to the Pass Through Certificates (PTCs) to be issued by Indian Infrastructure Equipment Receivable Trust July 2009, as follows:

INR2,373.49m, Class A1 with a scheduled maturity at 15 June 2010 'F1+(ind)(SO)';

INR740.53m, Class A2 with a scheduled maturity at 14 October 2010 'AAA(ind)(SO)'; Stable Outlook; Loss Severity Rating assigned at 'LS-1';

INR78.25m, Class A3A with a scheduled maturity at 15 February 2011 'AAA(ind)(SO)'; Stable Outlook; Loss Severity Rating assigned at 'LS3';

INR541.16m, Class A3B with a scheduled maturity at 15 February 2011 'AAA(ind)(SO)'; Stable Outlook; Loss Severity Rating assigned at 'LS1';

INR537.97m, Class A4 with a scheduled maturity at 14 July 2011 'AAA(ind)(SO)'; Stable Outlook; Loss Severity Rating assigned at 'LS1'; and

INR306.34m, Class A5 with a scheduled maturity at 14 June 2013 'AAA(ind)(SO)'; Stable Outlook; Loss Severity Rating assigned at 'LS2'.

The transaction is a securitisation of receivables from a Construction Equipment (CE) loan pool originated by Srei Equipment Finance Pvt Limited (SEFPL; the "originator" or "seller"; 'AA(ind)'/Stable Outlook).

The expected ratings address the timely payment of interest and the timely payment of principal by the scheduled maturity dates in accordance with the transaction documentation. The expected ratings are based on SEFPL's origination, servicing, collection and recovery expertise, as well as the legal and financial structure of the transaction and the credit enhancement provided by the originator.

The loans that are assigned to the Trust have an aggregate outstanding principal balance of INR4,577.73m and future receivables of INR5171.50m as of the cut-off date of June 2009. This is a par transaction, which benefits from an available credit enhancement of 13.4% of future receivables.

As part of its analysis, Fitch built a pool cash flow model based on the financial structure of the transaction. The agency also analysed historical data to determine the base case values of key variables that would influence the level of expected losses in this transaction. The base case values of the default rate, recovery rate, time to recovery, collection efficiency, prepayment rate and pool yield were stressed to assess whether the level of credit enhancement was sufficient for 'F1+(ind)(SO)'/'AAA(ind)(SO)' ratings.

The final ratings are contingent upon receipt of final documents conforming to information already received.

A presale report for this transaction will be available shortly on Fitch's website, www.fitchindia.com.

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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