New Delhi, July 29: Credit rating agency ICRA today assigned a conditional highest safety 'MAAA(SO)' rating to Rs 55.82 crore securitisation issue of Cholamandalam Investment and Finance (CIFCL). ICRA said the rating is based on the sale of identified hp/loan contracts to a special purpose vehicle, the strength of cash flows from the selected pool of contracts, the credit enhancement mechanism and the integrity of legal structure.
The 'MAAA(SO)' has been assigned to the senior pass through certificates issued under the securitisation programme of Rs 55.82 crore, originated by CIFCL.
ICRA, however, noted that the collection efficiency of CIFCL was on the decline and it was partly due to its entry into new business segments like two-wheeler finance, where the collection performance was yet to stabilise.
"However, this does not form a part of the current pool,"the credit rating agency said. Bureau Report