Triple A for Citicorp Finance

Crisil has assigned AAA(so) (Triple A structured obligation) to the Rs. 57.57 crore Pass Through Certificates (PTC) to be issued under the securitisation programme of Citicorp Finance (India) (CFIL). The said PTCs are backed by commercial vehicle and construction equipment hire purchase receivables.

The rating indicates highest degree of certainty regarding timely payment of financial obligations on the PTC. The rating is based on the strength of cashflows from the selected pool of 2,312 hp contracts having future receivables of Rs. 57.47 crores, true sale of receivables by CFIL to the investors, the payment mechanisms designed to ensure full and timely payment and credit enhancement in the form of a legally enforceable undertaking from CFIL to the tune of Rs. 5.74 crores to meet shortfalls, if any, in pool collections, for meeting investor obligations in a timely manner.

Citicorp is a Mumbai based NBFC promoted by Citibank. It is engaged in hire purchase and leasing of commercial vehicles, and construction equipment. For the year ended March 31, 2000, it registered a profit after tax of Rs. 21.4 crores on funds deployed of Rs. 1,230 crores.

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Section  : Business
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