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Indian Tractor Industry – Monthly Update: February 2017        Indian Poultry Industry: Poultry industry profitability expected to improve sharply in FY2017 majorly benefitting from lower soymeal prices        Public Announcement for Buyback of Equity Shares        Aggressive bidding for Rewa Ultra Solar Project leads to a significant improvement in cost competitiveness of solar tariff; viability rests on long debt tenure, scale benefits and risk mitigation measures        Indian Retail Non-Banking Finance Market: Currency Crunch to impact near term business growth and asset quality of Retail NBFCs: H1FY2017 Performance Update and Industry Outlook        Delay in resumption of imports by Iran likely to hinder recovery in Basmati rice exports from India: ICRA        Indian Mortgage Finance Market Update for H1FY2017: Affordable housing segment to remain key growth driver; overall housing loan growth likely to witness near term moderation Performance Review of Housing Finance Companies and Industry Outlook        WPI inflation surges to higher-than-expected 5.2% in Jan 2017 led by commodity prices, unfavourable base effect        Report on Housing Finance Companies: Key financial and operational statistics of the housing finance companies extracted from ICRA’s databases, presented in a format convenient to read and understand        Indian Automobile Industry – Two Wheelers: Emerging Out Of Demonetization Woes: Monthly Update       
 
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Indian Poultry Industry: Poultry industry profitability expected to improve sharply in FY2017 majorly benefitting from lower soymeal prices
Indian Tractor Industry – Monthly Update: February 2017
Aggressive bidding for Rewa Ultra Solar Project leads to a significant improvement in cost competitiveness of solar tariff; viability rests on long debt tenure, scale benefits and risk mitigation measures
Indian Retail Non-Banking Finance Market: Currency Crunch to impact near term business growth and asset quality of Retail NBFCs: H1FY2017 Performance Update and Industry Outlook
More...
 
STRUCTURED FINANCE RATING

ICRA’s Structured Finance Ratings (SFRs) are ICRA’s opinion on the likelihood of the rating structured instrument servicing its debt obligations in accordance with the terms. An SFR, which is generally different from the corporate Credit Rating of the originator, is based on the assessment of the risks associated with the individual components of the structured instrument. These components include legal risk, credit quality of the underlying asset, and the various features of the structure. The symbols used for SFRs are similar to the Credit Rating symbols, except that the SFRs carry a suffix of SO (for Structured Obligation) within parentheses alongside. SFRs are based on an estimation of the expected loss on the Rated instrument, under various possible scenarios. The expected loss is defined as the product of probability of default and severity of loss, once the default occurs. An SFR symbol indicates the relative level of expected loss for that instrument, with the risk of loss being similar as in the case of a corporate Credit Rating of the same level. An SFR is different from the Credit Rating of the originator as it is based on the strength of the underlying assets and structure. ICRA’s major SFR products (corresponding to the major categories of the underlying assets) are listed here. ICRA employs a specific methodology for each of its SFR products. The methodology is based on ICRA’s understanding of that particular asset class and the structure and legal issues associated with the transaction involved.

Asset-Backed Securitisation (ABS)

ABS refers to the securitisation of a diversified pool of assets, which may include financial assets like automobile loans, commercial vehicle loans, or consumer durable loans, or any non-financial class of assets that are identifiable and separable from the operations of the issuer, and whose risk of loss is measurable.

Mortgage Backed Securitisation (MBS)

An MBS has diversified housing loans as the underlying asset for the transaction.

Collateralised Debt Obligation (CDO)

A CDO transaction has a pool of corporate loans, bonds or any other debt security, including structured debt, as the underlying asset.

Future Flow Transaction (FFT)

FFTs involve a structure where specific sources of future cash flows are identified and earmarked for servicing investors. Some examples of such sources are property tax revenues of municipal corporations, power receivables of bulk consumers, and property lease rentals. FFTs are not completely de-linked from the credit risk of the issuer, but the structure, through preferential tapping of the cash flows of the issuer, can achieve a Rating that is higher than the issuer’s Credit Rating.

Partial Guarantee Structures (PGS)

These are on balance sheet liabilities that are credit enhanced through an external guarantee.

The Benefits

An issuer may derive multiple advantages from structured finance products like lower cost of funds, access to new markets and investors on the strength of a higher Rating vis-à-vis a stand-alone corporate Credit Rating, improved capital adequacy, reduced asset-liability mismatches, and greater specialisation.

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