Crisil assigns 'AAA (so)' rating to Tata Motors

Mumbai, Apr 6 (UNI) Rating agency Crisil has assigned a credit opinion, equivalent to a rating of ''AAA (so)'', to Tata Motors Limited's (TML) assignment of receivables programme valued at Rs 138.76 crore spread over 57 months.

The credit opinion is based on the credit quality of the pool cash flows, TML's origination and servicing capabilities, the available enhancement and the soundness of the legal structure, stated a Crisil release here today.

The credit enhancement transaction involves assignment of receivables to the acquirer in exchange for an initial purchase consideration. The credit-cum-liquidity enhancement for the transaction shall be in the form of subordination of collections from opening overdues in the pool and cash collateral of Rs 12.1 crore which is equivalent to 8.7 per cent of the acquirer's payouts.

Pointing out that the pool consists of commercial vehicle (CV) loan receivables sourced through Tata Motors direct origination channel, the release stated that the pool is characterised by moderate seasoning of 5.4 months and geographical diversity.

Crisil has rated 29 pools, originated by TML and erstwhile Tata Finance, and all the pools have shown stable collection performance with credit-cum-liquidity enhancement utilisations in line with its expectations, said the release.

The provisional credit opinion will become valid once the legal documentation pertaining to the transaction is duly executed to its satisfaction after which the rating agency will issue a compliance letter, stated the release.

UNI JJ SSS AG2043