Business Standard

Fitch Rates PTCs To Be Issued by BPCL Loan Securitisation Trust Series 61

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Announcement Banking

Fitch Ratings has assigned expected ratings of 'F1+(ind)(SO)' to series 1A and series 1B Pass Through Certificates (PTCs), to be issued by an SPV called BPCL Loan Securitisation Trust Series 61. The transaction is a securitisation of receivables from a short-term loan maturing on 24 September 2009.

The PTCs' expected ratings reflect the credit quality of the underlying obligor, Bharat Petroleum Corporation Limited (BPCL or the "obligor"), the payment structure of the PTCs and the legal and financial structure of the transaction. The expected ratings address the timely payment of interest and the timely payment of principal by the final maturity date of 25 September 2009, in accordance with the transaction documentation.

 

The SPV shall purchase the receivables from ICICI Bank Limited (ICICI Bank or "the originator" or "the seller") in trust for the benefit of the PTC investors. After acquiring the receivables the SPV shall issue PTCs to the investors for a total consideration equivalent to the value of the discounted cash flows from the loan. The issue proceeds will be used by the SPV to pay ICICI Bank the purchase consideration.

The loan aggregates to INR3,000m and is extended by ICICI Bank to BPCL. The ratings of the PTCs are directly linked to Fitch's internal credit view of the underlying obligor, BPCL, which is sufficient to assign the PTCs' an expected rating of 'F1+(ind)(SO)'.

The final rating is 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.

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 Ratings currently maintains coverage of approximately 6,000 financial institutions, including over 3,200 banks and 2,200 insurance companies. Finance & leasing companies, broker-dealers, asset managers, managed funds, and covered bonds make up the remainder of Fitch Ratings’ financial institution coverage universe.

Fitch India has Five rating offices located at Mumbai, Delhi, Chennai, Kolkata and Bangalore. Fitch is recognised by Reserve Bank of India, Securities Exchange Board of India (SEBI) and National Housing Bank.

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First Published: Aug 11 2009 | 7:30 PM IST

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