CRISIL''s assigns AAA(SO) equivalent to ICICI Bank''s direct assignment of auto loan receivables

Cash Flows
(Rs. mn)
Credit Opinion
Acquirer's share
Credit Quality equivalent to a rating of AAA (so) (Provisional)

CRISIL has assigned credit opinion equivalent to a rating of AAA (SO) to acquirer's share of payouts backed by pool of auto loan receivables originated by ICICI Bank Limited.

The provisional credit opinion is based on the credit quality of the pool cash flows and ICICI Bank's origination and servicing capabilities. The transaction is backed by legally sound structure, clearly defined payment mechanism and external support through credit and liquidity support facilities.

The transaction involves assignment of auto loan receivables, to the acquirer in exchange for a purchase consideration. The consideration amount is arrived at by discounting the future receivables at the agreed sell down rate.

The enhancements are segregated into liquidity facility and credit collateral. The liquidity facility is used to fund short-term collection shortfalls and the credit collateral will be used to fund shortfalls that are permanent in nature.

CRISIL has in the past rated of asset backed securitisation pools of ICICI Bank. The performance of these pools has been excellent with limited use of stipulated enhancements.

ICICI Bank is the market leader in the auto loan finance business with an outstanding of Rs127 billion as on March 31, 2005 in its auto loan portfolio. Its robust underwriting standards and adequate collection infrastructure supports the aggressive growth in the portfolio size and helps the bank maintain low loss levels which are amongst the best in the industry.