Transamerica Apple Distribution Finance Ltd

• Short term debt- Rs. 100 crore Rating : P1+

CRISIL has assigned a "P1+" (pronounced P one plus) rating to the Rs. 1 billion Short term debt programme of Transamerica Apple Distribution Finance Limited (TADFL).

The rating factors the international parentage of TADFL (70% ownership by Transamerica Finance Corporation, USA (Transamerica) and the balance 30% is held by Apple Finance Ltd and Apple Credit Corporation Ltd, India) and Transamerica’s strengths as reflected in its international ratings. The rating also factors the support extended by the parent in terms of management and strong information systems. However, TADFL faces the challenges of maintaining growth and profitability in the consumer finance business in an intensely competitive business environment.

TADFL is 70-30 joint venture of Transamerica Finance Corporation (through its investment arm Transamerica Distribution Finance (TDF), Mauritius) with Apple Finance Ltd and Apple Credit Corporation Ltd. TDF is a 100% subsidiary of Transamerica Distribution Finance Overseas, Delaware, which in turn is wholly owned by Transamerica. As of October 1999, TADFL was capitalised at Rs. 116.4 million. TADFL is engaged in financing the inventory requirements of dealers of consumer durables, two-wheelers and IT equipment. The company also undertakes retail financing of the same asset classes.