Transaction Name	Details	Yield Terms	Issue Size (Rs. Million)	Tenure (Months)#	Credit Opinion	Credit-cum-liquidity Enhancement (Rs. Million)*
HDFC Assignment of Receivables January 2012	Acquirer Payouts (Principal)	Floating$	8,003.1	299	‘CRISIL AAA (SO) Equivalent’	440.2*
	Second-Loss Facility	-	320.1		‘CRISIL BBB (SO) Equivalent’	120.1

CRISIL has assigned its credit opinions equivalent to its ratings of ‘CRISIL AAA (SO)’ and ‘CRISIL BBB (SO)’ to the acquirer payouts and second-loss facility respectively under HDFC Ltd’s (HDFC’s; rated ‘CRISIL AAA/FAAA/Stable/ CRISIL A1+’) Assignment of Receivables January 2012 transaction.

The credit opinions are based on the credit quality of the pool cash flows, HDFC’s origination and servicing capabilities, credit-cum-liquidity enhancement and payment mechanism, and soundness of the transaction’s legal structure.

The receivables arise from a pool of residential housing loan receivables originated by HDFC. The transaction is structured at ‘par’. HDFC will directly assign the pool to the acquirer, who will pay a purchase consideration equal to the pool principal at the time of assignment. The acquirer payouts receive support from the stipulated cash collateral and the excess interest spread (subordinated to the acquirer payouts).

About the Pool
The pool consists of home loans; at least two monthly instalments have been paid for each of the loans. The seasoning of the pool is low, with a weighted average net seasoning of 6.1 months. The pool is geographically diversified, with the top three states in the pool together accounting for 59.4 per cent of its principal. 99.5 per cent of the contracts in the pool are current on payments as on pool cut-off date.

CRISIL has outstanding ratings/credit opinions on four securitisation/assignment transactions backed by home loan receivables originated by HDFC till date. The performance of all the pools is in line with CRISIL’s expectations.

About the Originator
HDFC was incorporated in October 1977. Its initial shareholders included the International Finance Corporation (IFC), Washington, and the Aga Khan Fund. HDFC is India’s first and largest dedicated housing finance company (HFC). It has played an active role in formulating the country’s national housing policy and has presence in a number of committees related to housing finance and urban development. As on March 31, 2011, HDFC’s loan book was Rs.1171.3 billion, of which, 66 per cent consisted of loans to individuals, while loans to corporate and builders accounted for the remainder. HDFC’s overall loan book increased to Rs.1269.9 billion as on September 30, 2011.

HDFC holds a 60.4 per cent equity stake in Gruh Finance Ltd (rated ‘FAA+/Stable/CRISIL A1+’), an HFC based in Gujarat. HDFC is also present in the insurance sector through HDFC Standard Life Insurance Company Ltd, in which HDFC holds an equity stake of 72.4 per cent, and through HDFC ERGO General Insurance Company Ltd, in which HDFC holds equity stake of 74 per cent. HDFC also holds 60 per cent equity stake in HDFC Asset Management Company. HDFC Bank Ltd (HDFC Bank; CRISIL has a rating of ‘CRISIL AAA/Stable’ on HDFC Bank’s Upper Tier II bonds and Tier I Perpetual bonds) is an associate entity in which HDFC (along with its wholly owned subsidiaries, HDFC Investments Ltd and HDFC Holdings Ltd) holds an equity stake of 23.2 per cent. HDFC also has a stake of 62.3 per cent in Credila Financial Services (rated ‘CCR AA+’ by CRISIL), a company offering education loans.

HDFC’s presence in the housing finance, life and general insurance, asset management, banking and education has enabled the company to leverage its brand and provide a wide array of financial services to its clients.