"The affirmation of the current rating is based on the high level of credit enhancement available to the LBTCs in the form of principal overcollateralisation (defined as excess principal of the underlying pool of loans/the outstanding principal of the LBTCs), which is adequate to absorb the stressed losses of the underlying pool of assets," Fitch said.
"The rating also reflects the uninterrupted payouts made to LBTC investors from cash flows derived from the underlying pool (without recourse to the originator) during the current review period (January 2007 to June 2007)."
Fitch said six monthly payouts were made during the period reducing the outstanding principal on the notes to 9.6 million rupees.