India Ratings & Research has affirmed the credit rating for Prime Trust SBL Aug 22, an asset-backed securitization transaction originated by SBFC Finance. The rating for the Series A1 securitized notes is reaffirmed at IND AA(SO)/Stable. This rating action reflects the structured transaction’s ability to meet its obligations and signifies a stable outlook for the underlying asset pool.
Credit Rating Affirmation
India Ratings & Research has affirmed the credit rating of IND AA(SO)/Stable for the Series A1 securitized notes issued under Prime Trust SBL Aug 22. This transaction involves pass-through certificates (PTCs) originated by SBFC Finance and backed by a pool of asset-backed securities.
Transaction Details
The Prime Trust SBL Aug 22 represents a securitization of asset-backed securities originated by SBFC Finance. The structure involves a series of securitized notes, with the Series A1 notes specifically receiving the affirmed rating. As of September 24, 2025, the rating outlook is considered stable.
Rating Rationale
The affirmation reflects India Ratings’ assessment of the transaction’s creditworthiness and its capacity to meet financial obligations. The rating is based on the underlying asset pool’s performance and the structural features of the securitization.
Details of CE Reset
The originator has proposed to reset the CE as per the Reserve Bank of India’s Guidelines on Securitisation Transactions – Reset of CE. Ind-Ra confirms that the CE reset from its current level of INR 77.0 million to INR 60.4 million, will not result in a withdrawal or will not adversely affect any of the ratings.
Pool Details
Opening Principal Outstanding (POS): INR 1,539.41 million
Outstanding POS as of August 2025 payout: INR 657.93 million (excluding overdues)
Total CE
Current available CE: INR 77.00 million
Amount required to retain the rating: INR 49.31 million
Reserve Floor (30.00% of Original CE): INR 23.10 million
Excess CE: INR 27.69 million
Maximum release of CE (60.00% of Excess CE): INR 16.61 million
Minimum expected CE post release: INR 60.39 million
FLCF
Current available FLCF: INR 77.00 million
Maximum release of FLCF: INR 16.61 million
Minimum expected FLCF post release: INR 60.39 million
Source: BSE
