Over the last quarter, ICRA has upgraded the ratings on numerous securitisation transactions backed my micro-loan receivables, structured and arranged by IFMR Capital. Once more, these transaction upgrades are backed by strong pool performance. We present here a summary of the upgrades over the last quarter.
Aether IFMR Capital 2011 and Delas IFMR Capital 2012
ICRA upgraded the ratings of the Series A2 PTCs issued by Aether IFMR Capital 2011 from BBB- (SO) to AA- (SO) and the ratings on PTCs issued by Delas IFMR Capital 2012. Rating on series A1 PTCs of Delas IFMR Capital 2012, was revised from A- (SO) to AA- (SO) and rating on series A2 PTCs was upgraded from BBB- (SO) to A- (SO). Both transactions were backed by micro-loan securities originated by Grameen Financial Services Pvt Ltd. The rating upgrades were driven by good collection performance on the underlying pool and enhanced credit enhancement cover over the balance tenure. The pool comprised of micro-loan contracts with medium residual tenure of contracts, moderately high seasoning and no overdue.
Summary of actions taken by ICRA and Performance Summary
Helios IFMR Capital 2011 and IFMR Capital Pioneer Revolver
ICRA revised the ratings of the PTCs issued by Helios IFMR Capital 2011 and IFMR Capital Pioneer Revolver. For Helios IFMR Capital 2011, the rating on Series A1 PTCs was upgraded from A1 (SO) to A1+ (SO) and the rating on Series A2 was upgraded from A3+ (SO) to A2+ (SO). The Series A1 PTCs of IFMR Capital Pioneer Revolver was upgraded from A (SO) to A+ (SO) while the rating on Series A2 was reaffirmed at BBB (SO). The ratings were backed by stellar collection performance of the underlying pools. Both transactions with backed by micro-loan securities originated by Grama Vidiyal Micro Finance Limited.
Hestia IFMR Capital 2011
ICRA upgraded the ratings on securities issued by Hestia IFMR Capital 2011. The ratings upgrade reflected the good collection performance on the underlying pool and enhanced credit enhancement cover over the balance tenure. The rating on Series A1 PTCs was revised from BBB+ (SO) to AA (SO) and the rating on Series A2 PTCs was revised from BB (SO) to A- (SO). The transaction was backed by micro-loan receivables originated by Sonata Finance Pvt Ltd.
Summary of actions taken by ICRA and Performance Summary
IFMR Capital Mosec VI, Mosec VII and Mosec VIII
ICRA upgraded the rating on Series A1 PTCs on three multi-originator securitisation transactions structured and arranged by IFMR Capital – IFMR Capital Mosec VI, VII and VIII. Moreover, the subordinated contribution in all three transactions have been upgraded to PTCs. The upgrade of the subordinated tranche to rated PTCs will have significant impact as it will greatly improve the secondary market for Mosec securities.
On Mosec VI and Mosec VII, the rating of Series A1 PTCs was revised from BBB+ (SO) to AA (SO). On Mosec VIII, the rating of Series A1 PTCs was revised from BBB+ (SO) to A+ (SO). The Series A2 PTCs for Mosec VI and VII were assigned a rating of BBB+ (SO), whereas the Series A2 PTCs of Mosec VIII gained a rating of BB+ (SO). The ratings upgrade reflected the good collection performance of the underlying pools and enhanced credit enhancement cover over the shorter residual tenure.
Summary of actions taken by ICRA and Performance Summary
IFMR Capital Mosec V, Mosec IX, Mosec X and Mosec XI
ICRA upgraded another set of Multi-Originator Securitisations structured and arranged by IFMR Capital – IFMR Capital Mosec IX, X and XI and upgraded the rating of the subordinated contribution in Mosec V. The ratings reflected the good collection performance on the underlying pools and enhanced credit enhancement cover for the rated instruments over the shorter residual tenure.
The senior tranche of IFMR Capital Mosec IX was upgraded from BBB+ (SO) to A+ (SO), the senior tranches of IFMR Capital Mosec X and Mosec XI were upgraded from A- (SO) to AA- (SO). The subordinated tranche of all three transactions received a rating of BB+. The subordinated contribution of IFMR Capital Mosec V was upgraded from B+ (SO) to A- (SO).
