Icra has assigned a LAAA (SO) rating to the Rs 374 crore class A units proposed to be issued by the Indian Corporate Collateralised Debt Obligation Fund (ICCDO Fund) scheme of ICICI Securities Fund. The rating indicates highest safety. The Rs 59 crore Class B units issued under the scheme has been assigned a LA+ (SO) adequate safety rating.
ICCDO Fund is a close-ended debt mutual fund scheme which would issue units worth Rs 503.50 crore in A, B and C classes with each series of units carrying progressively higher risk level. The unrated class C units, amounting Rs 70.5 crore, would be retained by the originators and would serve as a credit enhancement buffer to the rated class A and class B units.
The class B units would be subordinate in payment to class A and would thus provide credit enhancement to it. The proceeds of the issue would be used to acquire a pool of 22 identified portfolio investments
