OREANDA-NEWS. Fitch Ratings has affirmed the ratings of pass-through certificates from eight Platinum Trust transactions. The Outlooks are Stable. All of the transactions are securitisations of auto loans in India originated by Cholamandalam Investment and Finance Co. Ltd (CIFCL).

The rating actions can be found at the end of this commentary.

KEY RATING DRIVERS
The affirmations reflect the build-up of credit enhancement (CE) since closing and steady portfolio performance. All the transactions have achieved excess spread monthly since their respective closing dates, and no CE has been drawn in any period. Delinquencies and defaults for transactions that closed in 2013 have stabilised in recent months, while the performance of transactions that closed in 2014 remains in line with Fitch's expectation. Loans that are delinquent for 90 days or more as a proportion of the original pool balance has remained below 5% for each transaction.

Fitch expects these transactions to perform better in 2015 than in 2014, based on its expectations of improving growth in the Indian economy and the continued amortisation of the underlying portfolios.

RATING SENSITIVITIES
Fitch evaluated the rating sensitivities of each transaction under an increased default rate scenario and a decreased recovery rate scenario.

Fitch may consider a downgrade of the rated notes if the initial base-case default rate increases by between 8% and 425% for all transactions except Platinum Trust 2013, where there will be no impact under the most stressful default rate scenario of 100% asset default.

Fitch may consider a downgrade of the rated notes if the initial base-case recovery rate decreases by between 14% and 30% for Platinum Trust December 2014 and Platinum Trust August 2014. There will be no rating impact on the other transactions under the most stressful recovery rate scenario of no recoveries.

Fitch considers the likelihood of any downgrades to be remote, based on its asset analysis and outlook on India's economy.

The ratings may be upgraded if the ratings of the credit collateral bank holding the first-loss credit facility deposit and the guarantee bank providing the second-loss credit facility (where applicable) are upgraded to above 'BBB-' and the portfolio performance remains sound, with adequate CE that can withstand stress at above a 'BBB-sf' rating scenario.

A comparison of the transactions' representations, warranties and enforcement mechanisms (RW&Es) to those of typical RW&Es for this asset class is available by accessing the reports and/or links given under Related Research below.

The full list of rating actions is shown below:
Platinum Trust 2013
INR508.7m class A3 notes due April 2017 affirmed at 'BBB-sf'; Outlook Stable

Platinum Trust February 2013 - Tranche II
INR590.2m class A due June 2017 affirmed at 'BBB-sf'; Outlook Stable

Platinum Trust March 2013
INR374.7m class A notes due August 2017 affirmed at 'BBB-sf'; Outlook Stable

Platinum Trust November 2013
INR1.645bn class A notes due December 2017 affirmed at 'BBB-sf'; Outlook Stable

Platinum Trust February 2014
INR1.318bn class A notes due June 2018 affirmed at 'BBB-sf'; Outlook Stable

Platinum Trust February 2014 Tranche II
INR256.3m class A notes due January 2019 affirmed at 'BBB-sf'; Outlook Stable

Platinum Trust August 2014
INR2.368bn class A notes due February 2019 affirmed at 'BBB-sf'; Outlook Stable

Platinum Trust December 2014
INR2.784bn class A notes due August 2019 affirmed at 'BBB-sf'; Outlook Stable