March 19, (LBO) – A lease-backed securities issue of Senkadagala Finance had its A (lka) national rating affirmed Monday, but Fitch Ratings said minimum credit enhancement levels have been breached at several points.
Monthly prepayments have hovered between 0 and 3.6 percent of the outstanding pool principal, while a 15.9 percent of the initial pool principal has been prepaid. Fitch said it was re-affirming the rating on condition that more than 30 percent of excess assets (over-collateralization) is maintained in the trust for the remainder of its time.
In July 2004, special purposes vehicle, Senkadagala Finance Trust Three (SFT3) issued 48 Lease Backed Trust Certificates (LBTCs) with a face value of 51.3 million rupees, and over-collateralized by 67.9 million rupees worth lease contracts.
The trustee is Deutshe Bank.
Overcollateralisation, defined as excess principal of the underlying assets over the outstanding principal of the LBTC’s, was 32.3 percent at the inception.
It was to be maintained at a minimum of 20 percent.
Senkadagala was required to replace assets that are prepaid or are classified as over two-months overdue every quarter with performing assets.