ICRA assigns quality rating to HDFC Bank's Rs 386 cr PTCs

New Delhi, Oct 17 (UNI) Credit rating agency ICRA has assigned conditional highest-credit-quality ratings to the over Rs 386 crore Pass Through Certificates (PTCs), under the securitisation issue backed by car, multi-utility vehicles and two-wheeler loan receivables originated by HDFC Bank Ltd.

The Rs 386.23 crore issue consists of five series of PTCs rated A1+, LAAA, LAAA, LAAA and LAAA respectively.

The ratings are subject to the fulfillment of all conditions under the structure, review of documentation pertaining to the transaction by ICRA and HDFC Bank's furnishing to ICRA of an independent legal opinion on the transaction from the legal counsel.

The conditional ratings are based on strength of cash flow from the selected pool of contracts, the credit enhancement in the form of corporate undertaking by HDFC Bank, amounting to 5.60 per cent of pool cash flows and subordination of opening overdue, liquidity support of 0.65 per cent of pool cash flows and the integrity of the legal structure.

The selected pool is composed of receivables on loans given for financing new cars (76 per cent) and two wheelers (24 per cent).

Both the car and two-wheeler sub-pools are characterised by good average seasoning (10.4 months in car sub-pool and 5.8 months in two-wheeler sub-pool) and low share of overdue contracts.

HDFC Bank is among the leading players in both car as well as two-wheeler finance business.

UNI PV CS HT1758