SKS Microfinance receives safety rating from CRISIL

SKS Microfinance today announced that its unique securitisation deal worth Rs 100 crore with YES Bank has received CRISILs highest safety rating, making it the first securitization deal in the counrty to get the rating. According to a statement here, the transaction allows the bank to purchase 1,48,950 micro loans extended to unbanked SC, ST and minorities families identified by the RBI as 'weaker sections'. Company CFO S Dilli Raj said, ''With this transaction, a new 'asset class' is born. For the first time in the Indian MFI history, a securitised pool is rated P1+ (SO), which is the best possible rating and showcases SKSs structuring and financial innovation skills.'' The transaction has been assigned with a rating opinion of P1+ SO (Very Strong Safety) by CRISIL (a Standard and Poor's company) following an analysis of over one million loans extended by SKS. The assignment transaction is credit enhanced with extra collateralisation and cash margin which are subordinated to payouts to YES Bank. The Pool is geographically diversified across more than ten states. It has net seasoning of 6.5 weeks and the average ticket size is Rs 8,900. SKS will service the pool contracts as the servicing agent. ''This is yet another step forward in financial inclusion and is indicative of the excellent 'asset quality' of SKS. Structured products like securitisation will enhance access to capital and accelerate social benefits,'' company CEO and MD Suresh Gurumani said.

-- (UNI) -- 02MC13.xml

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