Shriram Finance Ltd.

CARE has assigned a provisional rating of ‘AAA(SO)’ to the Series A1 and Series A2 PTCs issued by STFCL Sansar Trust Sep 2012-III backed by New and Used vehicle loan receivables originated by Shriram Transport Finance  Company (STFCL).

The Second Loss Facility (SL), a part of total Credit enhancement, has been assigned a provisional credit opinion equivalent to ‘BBB (SO)’ rating. 

The ratings are based on the credit quality of the underlying loans; the transaction structure and defined payment mechanism; support in the form of credit enhancement facility; the sound legal structure and the long track record and good performance of STFCL.

STFCL, the Originator has assigned the identified pool of loan receivables to the Trust. The transaction has a Par structure. STFCL will act as the Servicer to the transaction. The Credit cum liquidity enhancement is in the form of fixed deposit with lien marked in favor of the Trust or guarantee as per CARE’s criteria.

The assigned pool consists of 1,990 loan contracts given against New (91.54%) & used assets (8.46%) as on cutoff date. The pool comprises of loans against heavy commercial vehicle (35.97%), small & light commercial vehicle (42.37%) and passenger vehicle (21.66%).