Fitch Ratings has assigned final ratings of 'F1+(ind)(SO)' to two Series of pass-through certificates (PTCs) A and B, as well as 'AAA(ind)(SO)' final ratings with Stable Outlooks to eight series of PTCs - C, D, E, F, G, H, I and J, issued by 'Novo IV Trust - Locomotive' (Trust).
The transaction is a securitisation of INR11.6bn of lease receivables due to Indian Railway Finance Corporation Limited (IRFC) from the Ministry of Railways, Government of India, in respect of certain rolling stock assets that were leased from August 1998 to March 1999.
The final ratings of the PTCs are based on the credit quality of the underlying obligor, Ministry of Railways, as well as the legal and financial structure of the transaction. The final ratings address the ultimate payment of principal to the PTC investors by the final legal maturity date of 17 October 2014, in accordance with the transaction documentation.
The Trust purchased the receivables from IRFC for the benefit of the PTC investors. After acquiring the receivables, the Trust has issued PTCs to the investors, for a total consideration equivalent to the value of the discounted cash flows from the lease receivables. The issue proceeds were used by the Trust to pay IRFC the purchase consideration.
A new issue report for this transaction will be available shortly on Fitch's 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.
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