Tata Finance bags top securitisation rating

 This indicates the highest degree of certainty regarding timely payment of financial obligations.

 The Rs 78.95 crore senior pass-through certificates (PTC) issued are backed by the pool of receivables with a maturity period of 54 months.

 According to Crisil release, the issuer for transaction shall be a trust settled by IL&FS Trust Company Ltd.

 The instruments will have a premium structure wherein the pool receivables will be sold to the trust, which will then issue PTCs to investors at the discounted value of the future cash flows from the pool.

 Amounts raised will be paid to Tata Finance as consideration for the receivables purchased. Under the proposed structure, payments to PTC holders are staggered so that any liquidity mismatch on account of the difference between the scheduled payouts to investors and the collections from the underlying pool is minimised.

 The pool comprises 4,233 hire purchase contracts selected from Tata Finance