The pass through securities are backed by a pool of housing loans that were originated by HDFC Bank which has been rated 'A(lka)' with a Stable outlook.
"The affirmation is based on the robust performance of the transaction to-date, the availability of credit enhancement to Series-A investors in the form of high over-collateralisation, excess interest spread (EIS), a liquidity reserve held at Citibank N.A - Colombo Branch, and the relatively strong credit quality of the underlying collateral," Fitch said.
EIS is the interest collected on the underlying pool less coupon interest paid on Series-A.
Fitch said that although the asset quality of the underlying pool "deteriorated somewhat" it does not see it as a serious