TEXT-Fitch release on Corporate Debt CB Trust A 2008 notes

(The following statement was released by the ratings agency)

June 20 - Fitch Ratings has assigned an expected National Long-term rating of 'AA(ind)(SO)' with a Stable Outlook to series A1(PO) and series A1(IO) Pass Through Certificates (PTCs), to be issued by a SPV called Corporate Debt CB Trust A 2008. This transaction is the securitisation of receivables from a term loan of 15 months, maturing on 3 September 2009. The final rating is contingent upon receipt of final documents conforming to information already received.

The loan aggregates to INR500 million and is extended by JP Morgan Chase Bank N.A. (JPMC or "the originator" or "the seller") to Shriram Transport Finance Company Limited (SRTR.BO: Quote, Profile, Research) (STFCL or "the obligor"). The expected rating of the PTCs reflects the credit quality of the underlying obligor, the payment structure of the PTCs and the proposed legal structure of the transaction.

The SPV shall purchase the receivables from JPMC in trust and for the benefit of the investors. After acquiring the receivables, the SPV shall issue PTCs to the investors, for a total consideration equivalent to the value of the discounted cash flows from the loan. The issue proceeds will be used by the SPV to pay JPMC the purchase consideration.

The ratings of the PTCs are directly linked to the rating of the underlying obligor. Fitch maintains a rating of 'AA(ind)' with a Stable Outlook on STFCL, and hence the same rating on the PTCs.