TEXT-Fitch asgns expected rtgs to SLCFs in 5 STFCL transactions

(The following statement was released by the rating agency)

Oct 8 - Fitch Ratings has assigned expected ratings of
'BBB(ind)(SO)' and assigned Stable Outlooks to the following
Second Loss Credit Facilities (SLCF), as follows:

Second Loss Credit Facility of INR399.2m in STFCL's Direct
Assignment of Tractor Loans - March 08;

Second Loss Credit Facility of INR515.9m in STFCL -
Assignment of Loan Receivables Programme 2007;

Second Loss Credit Facility of INR261.7m in STFCL's Direct
Assignment of CV Loans to HDFC - March 08;

Second Loss Credit Facility of INR325.6m in Small Operator
Trust 2008; and

Second Loss Credit Facility of INR129.3m in SRTO Pool 2008 B.

The underlying pools in these five transactions were
originated by Shriram Transport Finance Co. Ltd. (STFCL, the
"originator" or "seller", 'AA(ind)'/Stable). For each of these
transactions, the expected ratings address the ultimate payment
of principal to the Second Loss Credit Facility Provider by the
scheduled maturity date in accordance with the transaction
documentation.

The expected ratings are based on STFCL's origination,
servicing, collection and recovery expertise, the legal and
financial structure of each of the transactions as well as the
credit enhancement in the form of First Loss Credit facility and
the liquidity facility provided by the originator. In each of
these transactions, the credit enhancement for the pool was
provided at closing in the form of First and Second Loss Credit
Facilities along with a liquidity facility to cover any
shortfalls on account of 0-90 day past delinquent (dpd) loans.

The Second Loss Credit Facilities are to be used to cover any
shortfalls on account of 90+ dpd loans, once each of these First
Loss Credit Facilities are exhausted.

As part of its analysis, Fitch built a pool cash flow model
based on the financial structure of each of the transactions. The
agency also analysed historical data to determine the base values
of key variables that would influence the level of expected
losses in these transactions. 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 available was sufficient for each
of the 'BBB(ind)(SO)' ratings.

The final ratings for these five transactions are contingent
upon receipt of final documents conforming to information already
received.

Rating Outlooks have been published for all newly issued Asia
Pacific Structured Finance tranches since June 2008, and
concurrently with rating actions for tranches issued prior to
June 2008. Unlike a Rating Watch which notifies investors that
there is a reasonable probability of a rating change in the short
term as a result of a specific event, rating outlooks indicate
the likely direction of any rating change over a one- to two-year
period.

Contacts: Samiran Talukder, Mumbai: +91 22 4000 1764/
samiran.talukder@fitchratings.com; Sandeep Singh, +91 22 4000
1735/ sandeep.singh@fitchratings.com.

Media Relations: Shivani Sundralingam, Singapore, Tel: + 65
6796 7215.