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

A full list of rating actions follows at the end of this rating action commentary.

KEY RATING DRIVERS
The affirmations reflect the build-up of credit enhancement (CE) since closing and steady portfolio performance. As all the transactions have shown monthly excess spread since their respective closing dates, no CE has been drawn in any period. The transactions that closed before 2015 showed stabilising delinquencies and defaults in recent months, while performance of the transactions that closed in 2015 is in line with Fitch's expectation. The 90+ day delinquency rate as a percentage of each original pool balance peaked at about 3% for all the transactions.

Fitch affirmed India's Long-Term Foreign and Local Currency Issuer Default Ratings at 'BBB-' in December 2015. Fitch expects India's real GDP growth to pick up to 7.5% in the financial year ending 31 March 2016 (FY16) and 8.0% in FY17.

In 2016, Fitch expects these transactions to perform better than in 2015, based on its expectations of the Indian economy and the continued amortisation of the underlying portfolios.

The default performance of the underlying pool has been stable. The ABS cash flow model was not re-run for this rating action.

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

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

All the notes can withstand a significant increase in default rates at their 'BBB-sf' modelled loss severity, ranging from a default rate of 23.7%, which is 7.6 times the original modelled default rate for Platinum Trust - November 2013, to 6.6%, which is 39% higher than the original modelled default rate for Platinum Trust March 2015 - Tranche I. All notes can withstand a loss severity of 74.7% or greater at the 'BBB-sf' modelled foreclosure frequency. Platinum Trust - November 2013, Platinum Trust February 2014, Platinum Trust February 2014 Tranche II, Platinum Trust August 2014 and Platinum Trust - Dec 2014 could withstand zero recoveries at the 'BBB-sf' modelled default rates without affecting their ratings.

The ratings may be updated if the ratings of the credit collateral banks holding the deposits that form the first-loss credit facility (FLCF) and the guarantee banks providing the second-loss credit facility (SLCF) (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.

DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.

DATA ADEQUACY
Fitch conducted a file review of 20 sample loan files focusing on the underwriting procedures conducted by CIFCL compared to CIFCL's credit policy at the time of underwriting. Fitch has checked the consistency and plausibility of the information and no material discrepancies were noted that would impact Fitch's rating analysis.

A comparison of the transaction's 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 (note balances are as at last payment date of December 2015):
Platinum Trust - November 2013
INR554.2m class A PTCs due December 2017 affirmed at 'BBB-sf'; Outlook Stable

Platinum Trust February 2014
INR549.0m class A PTCs due June 2018 affirmed at 'BBB-sf'; Outlook Stable

Platinum Trust February 2014 Tranche II
INR99.2m class A PTCs due January 2019 affirmed at 'BBB-sf'; Outlook Stable

Platinum Trust August 2014
INR1.2bn class A PTCs due February 2019 affirmed at 'BBB-sf'; Outlook Stable

Platinum Trust - Dec 2014
INR1.7bn class A PTCs due August 2019 affirmed at 'BBB-sf'; Outlook Stable

Platinum Trust January 2015
INR1.9bn class A PTCs due June 2019 affirmed at 'BBB-sf'; Outlook Stable

Platinum Trust February 2015
INR1.3bn class A1 PTCs due March 2017 affirmed at 'BBB-sf'; Outlook Stable
INR628.2m class A2 PTCs due August 2019 affirmed at 'BBB-sf'; Outlook Stable

Platinum Trust March 2015 - Tranche I
INR2.0bn class A PTCs due November 2019 affirmed at 'BBB-sf'; Outlook Stable

Platinum Trust March 2015 - Tranche II
INR938.2m class A1 PTCs due March 2017 affirmed at 'BBB-sf'; Outlook Stable
INR604.0m class A2 PTCs due August 2019 affirmed at 'BBB-sf'; Outlook Stable.