Moody's affirms Baa3 (sf) rating on two series of certificates of Sansar

Moody's Investors Service has affirmed the Baa3 (sf) rating on two series of pass through certificates (PTCs) of Sansar Trust March 2015, a domestic transaction backed by a static pool of commercial vehicle loans originated by Shriram Transport Finance Company (STFCL, unrated) in India.

The performance of the collateral is within Moody's initial rating assumptions.

The affirmed ratings are as follows:

Issuer: Sansar Trust March 2015

INR 7,436,536,433 213 Series A1 PTCs, Affirmed Baa3 (sf); previously on Mar 24, 2015 Baa3 (sf) Assigned

INR 2,308,482,207 213 Series A2 PTCs, Affirmed Baa3 (sf); previously on Mar 24, 2015 Baa3 (sf) Assigned

RATINGS RATIONALE

The ratings on the two series of PTCs were affirmed because the key transaction metrics are within Moody's initial rating assumptions.

Moody's initial mean default assumption for the closing collateral pool was 4.5%. At end-November 2015, 0.17% of loans on the initial pool balance was over-180 days delinquent. This level is lower than Moody's expectation under its initial default timing assumption.

The available credit enhancement from the two credit facilities has remained unchanged since closing. Based on the current pool balance, the credit enhancement from the credit facilities has increased to 16.9%.

Principal payments are currently allocated sequentially between Series A1 PTCs and Series A2 PTCs. Upon trustee's declaration of a PTC acceleration following the occurrence of a PTC event of default, principal payments will be made to Series A1 PTCs and Series A2 PTCs on a pari-passu basis. At closing, Moody's incorrectly modeled the Series A1 PTCs and Series A2 PTCs to be repaid on a pari-passu basis at all times. The latest cash flow model reflects the correct priority of payments during the life of the transaction.

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