Fitch rates Kotak Mahindra Bank certificates AA-

Fitch Ratings said it assigned a national long-term rating of AA-(ind) to the pass through certificates to be issued by special purpose vehicle Corporate Loan Securitisation Series XVI Trust 2006. This transaction is a securitization of two corporate loans originated by India-based Kotak Mahindra Bank Ltd., (rated AA+(ind)/stable) and extended to Shriram Transport Finance Co., Ltd. (rated AA-(ind)/stable) and SREI Infrastructure Finance Ltd. (rated AA-(ind)/stable).

The expected rating of the pass through certificates reflects the credit quality of the underlying obligors, the payment structure of the certificates and the proposed legal structure of the transaction, the agency said.

The expected rating of the certificates is directly linked to the rating of the underlying obligors. Hence, a change in the rating of the underlying obligors would affect a rating action on the issued certificates, Fitch said.

The AA- rating indicates the very high credit quality and the very strong capacity for timely payment of financial commitments, Fitch added.

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