Fitch Ratings has assigned final ratings of 'AAA(ind)(SO)' with Stable Outlooks to Series T1 and Series T2 Pass Through Certificates (PTCs) issued by an SPV called Indian Loans Receivable Trust April II 2009. The transaction is a securitisation of receivables from a term loan maturing on 29 May 2011.
The PTCs' final ratings reflect the credit quality of the underlying obligor - IBM India Private Limited (IBM or "the obligor"), the payment structure of the PTCs and the legal and financial structure of the transaction. The final ratings address the timely payment of interest and the timely payment of principal by the final maturity date of 30 May 2011 in accordance with the transaction documentation.
The SPV purchased the receivables from Citibank, N.A (Citibank 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 Citibank the purchase consideration.
The loan aggregates to INR1000m and was extended by Citibank to IBM. The ratings of the PTCs are directly linked to IBM's rating, for which Fitch has a rating of 'AAA(ind)'.
A new issue report for this transaction will be available shortly on Fitch's India 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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