CRISIL upgrades rating for IFMR Capital Pioneer III securitisation with GFSPL

August 23, 2010 6:09 AM EDT

CRISIL has upgraded the rating of IFMR Capital Pioneer III securitisation with Grameen Financial Services Pvt. Ltd ( GFSPL) as the originator, in less than 5 months after the transaction.

CRISIL revised the rating of the AA (so) rated senior tranche to AAA(so) and that of the BBB(so) rated subordinated tranche to A(so), citing strong collection performance and amortisation of the pool as reasons for the upgrade.

The increased cover to investors offered by the unutilised cash collateral and subordinated cash-flows because of the over 99% collection efficiency triggered the upward rating revision. Prior to this, the Pioneer I and Pioneer II transactions received significant rating upgrades.

These regular and upward revisions in rating of microloan-backed securities reflect the high performance of this asset class as well as the increased confidence and comfort level of investors with it.

Based out of Bangalore (India) , Grameen Financial Service Pvt. Ltd. (GFSPL) is a non-deposit-taking NBFC registered with the Reserve Bank of India engaged in Microfinance services.

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GFSPL has 146 branches, a borrower strength of 0.35 million, and its presence has spread to 36 districts (as of March 2010). Since May 2008, GFSPL has also been offering individual loans on a pilot basis at three of its urban branches.

(Disclaimer: By arrangement with Microfinance Focus. All copy rights reserved by Microfinance Focus. International Business Times is not responsible for any omissions or commissions in the article.)