Detailed Rationale

CRISIL Ratings has reaffirmed its ‘CRISIL A+ (SO)’ rating to Series A1 securitisation notes (SNs) issued by ATHENA 2W 2022. The pool is backed by two-wheeler loan receivables originated by Manba Finance Ltd (Manba; not rated by CRISIL). The ratings are based on the credit support available to the SNs, the credit quality of the underlying pool receivables, Manba’s origination and servicing capabilities, and soundness of the transaction’s legal structure.

The transaction has a 'Par with flowback EIS' structure, wherein the trust settled by Catalyst Trusteeship Limited (CTL) will issue SNs in exchange of a purchase consideration equal to 90.0% of the pool principal at the time of securitisation. Total credit support available in the transaction is as follows:

• Internal credit support in the form of scheduled cash flow subordination aggregating Rs 5.27 crore, which includes overcollateralisation of Rs 2.50 crores (10.0% of pool principal)
• External credit-cum-liquidity collateral of Rs 2,49,89,813 (10.0% of pool principal or 8.3% of pool cashflows) also provides support to the SNs.

Series A1 SN holders are entitled to receive timely interest on a monthly basis, while the principal payment is promised on an ultimate basis. CTL has been appointed to monitor the transaction on behalf of the SN holders. Manba will continue to service the pool contracts as the servicing agent.

The pool is eligible for reset of credit enhancement. CRISIL Ratings has evaluated the reset in line with regulatory guidelines. However, investor consent is yet to be received. On receiving consent of the investor and trustee, a maximum amount of Rs 1.05 crore (42.0% of the current cash collateral) can be released from the credit enhancement.

About the Pool

The pool cash flow is securitised and comprises receivables from two-wheeler loans originated by Manba. The pool has a weighted average net seasoning of 6.4 months, weighted average LTV of 79.9% and top state Maharashtra accounting for 64.7% of pool principal. Average ticket size of the pool is Rs 77,113. All contracts in the pool are current as on the cut-off date

CRISIL Ratings has adequately factored all these aspects in its rating analysis.

Counterparty details

Any other information: Not Applicable

Annexure - Details of Instruments

^#Indicates door to door tenure. Actual tenure will depend on the level of prepayments in the pool, exercise of the clean-up call option and extension due to moratorium
^$Series A1 PTC holders are entitled to receive timely interest and ultimate principal.

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