TEXT-Fitch assigns final rtgs to STFCL's Direct Assignmt Jly 08

(The following statement was released by the rating agency)

Aug 28 - Fitch Ratings has assigned a final rating of
'AAA(ind)(SO)' with a Stable Outlook to the purchaser payouts in
a direct assignment transaction. The Commercial Vehicle (CV) and
Commercial Equipment (CE) pool assigned to the purchaser was
originated by Shriram Transport Finance Co. Ltd. (SRTR.BO: Quote, Profile, Research)
(STFCL, the "originator" or "seller", 'AA(ind)'/Stable). The
final rating addresses the timely payment of interest and the
timely payment of principal to the purchaser by the scheduled
maturity date of 15 April 2012 in accordance with the transaction
documentation.

The loans that are assigned to the purchaser have an
aggregate outstanding principal balance of INR271.3m and future
receivables of INR338.8m, as of the cut-off date on 31 May 2008.

The final rating is based on the origination, servicing,
collection and recovery expertise of STFCL, the legal and
financial structure of the transaction and the credit enhancement
and liquidity facility provided by the originator. In this
transaction, the credit enhancement for the pool is in the form
of a fixed deposit provided by the originator equal to 13.7% of
the future receivables as of the cut off date. There is also a
liquidity facility of 2.4% of the future receivables.

As part of its analysis, Fitch built a pool cash flow model
based on the financial structure of the transaction. The agency
also analysed historical data to determine the base values of key
variables that would influence the level of expected losses in
this transaction. The base values of the default rate, recovery
rate, time to recovery, collection efficiency, prepayment rate
and pool yield were stressed to assess whether the level of
credit enhancement was sufficient for a 'AAA' rating.

A new issue report for this transaction will be available
shortly on Fitch's website www.fitchindia.com.