Tata Engineering programme gets highest-safety rating from Icra

Our Banking Bureau

Mumbai, Aug 10: The Investment Information and Credit Rating Agency Ltd (Icra) on Friday assigned ‘MAA(SO)’ rating to Tata Engineering & Locomotive Co Ltd (Telco)’s Rs 112.35 crore securitisation programme. The rating indicates highest safety.

The rating reflects the strength of cash flows from the hire purchase (HP) contracts, the credit enhancement mechanism designed to ensure full and timely payment and the integrity of the legal structure.

The underlying asset for the programme is a pool of automobile HP receivables totalling Rs 112.35 crore with 35 months tenure. The receivables have originated in the normal course of business by the Bureau of Hire Purchase and Credit, the HP division of Telco.