Kolkata, 25th May, 2010: CRISIL has assigned its credit opinion equivalent to a rating of 'AAA(so)' to the acquirer's payouts under Magma Fincorp Limited's Assignment of Receivables - May 2010 I transaction. Instruments rated 'AAA' are judged to offer the 'highest degree' of safety with regard to timely payment of financial obligations.

The transaction has a 'premium' structure. Magma will assign the pool to the acquirer, who will pay a purchase consideration equal to the discounted value of the future receivables. The credit opinions are based on the credit quality of the pool cash flows, Magma's origination and servicing capabilities, the transaction's credit enhancement and payment mechanism, and the soundness of the transaction's legal structure.

The assignment transaction is backed by a pool of car loans originated by Magma. The pool is geographically diversified, with the top three states accounting for 31.6 per cent of the pool cash flows. The pool has a good seasoning profile (weighted average net seasoning of 12.1 months) and all the pool contracts are current on payment as on the pool cut-off date. The pool has a relatively higher proportion of long-tenure contracts: the weighted average original tenure is 46.5 months.

CRISIL has outstanding ratings on 15 securitisation / assignment transactions originated by Magma Fincorp; all the pools have exhibited satisfactory collection performances.

About Magma Fincorp Limited

Magma Fincorp Limited ("Magma") is a non-deposit taking non-banking finance company (NBFC), registered with the Reserve Bank of India (RBI) as an Asset Finance Company.

Magma provides a bouquet of financial products including financing of Utility Vehicles & Cars, Commercial Vehicles, Construction Equipments, Tractors and SME Loans. Magma has a dedicated base of over 2.5 lac customers and has assets of approximately INR 9390 crores under management. The company has 154 branches in 20 states and 1 union territory and employs over 4600 people.

Magma has recently signed a joint venture with HDI Gerling, part of Talanx Group, Germany's third largest insurance group to start a general insurance company in India. The new company will be head quartered in Kolkata.