Rationale

ICRA has assigned a Provisional [ICRA]AA-(SO) rating to PTC Series A1 under a securitisation transaction originated by Belstar Investment and Finance Private Limited (Belstar). The pass-through certificates (PTCs) are backed by a pool of Rs. 43.24-crore micro loan receivables (underlying pool principal of Rs. 36.83 crore). The provisional rating is based on the strength of the cash flows from the selected pool of contracts and the credit enhancement available in the form of (i) a cash collateral of 8.00% of the pool principal to be provided by the Originator, (ii) subordination of 16.00% of the pool principal for PTC Series A1, and (iii) subordination of the entire excess interest spread (EIS) in the structure. The rating also factors in the integrity of the legal structure. The rating is subject to the fulfilment of all the conditions under the structure and the review of documentation pertaining to the transaction by ICRA.