Press Release

WINX 01 24
Originator: Criss Financial Limited
October 29, 2024

Balance Credit Enhancement (₹ crore)

Amount
Instrument Tenure Rating1 Rating Action
(₹ crore)@ Cash
(months)* Over Collateral
Collateral

Series A1 PTC 23.33 12 2.80 7.84 CARE A- (SO) Reaffirmed

@
After September 2024 payout.
*
Tenure/door-to-door maturity may change due to prepayments or changes in interest rates.

Rationale and key rating drivers

CARE Ratings Limited (CARE Ratings) has reaffirmed the ratings of Series A1 PTC issued by WINX 01 2024, backed by unsecured
individual loans receivables originated by Criss Financial Limited (CFL), at ‘CARE A- (SO)’ [pronounced as Single A Minus
(Structured Obligation)].

The reaffirmation in the ratings is primarily based on the performance of the underlying loans in the last eight months post-
securitisation, the robust legal structure, the well-defined payment mechanism, the significant build-up in cash collateral (CC) and
over collateral (OC) – as a percentage of the balance amount of pass-through certificates (PTCs), the subordination of excess
interest spread (EIS), the servicing capability and overall performance of CFL.

Rating sensitivities: Factors likely to lead to rating actions

Positive factors - Factors that could, individually or collectively, lead to positive rating action/upgrade:
• Delinquencies (90+ days past due [DPD] as percentage of initial principal outstanding [POS]) of less than 3% and sustained
high collection efficiency (cumulative collection efficiency of over 98%).
• Build-up of CC of over 2x initial proposed (as a percentage of balance POS).

Negative factors - Factors that could, individually or collectively, lead to negative rating action/downgrade:
• Delinquencies (90+ DPD as percentage of initial POS) of over 8% and the sustained lower collection efficiency (cumulative
collection efficiency of less than 90%).
• Deterioration credit profile of the originator.
• Utilisation of CC.
• Non-adherence to key transaction terms envisaged at the time of the rating.

Analytical approach
The rating reaffirmation is based on inter alia, observed and expected performance of pool, presence of credit enhancement (CE)
and adherence to the transaction structure.

Pool Performance:
The pool has amortised by 44.36% in eight months post-securitisation, with nil utilisation of CC. The pool has exhibited moderate
delinquencies. As on September 2024, overdue (OD) (as a percentage of the initial POS) is 1.56%. The CE available is sufficient
to sustain the ratings for the balance tenure.

1
Complete definitions of ratings assigned are available at www.careedge.in and in other CARE Ratings Limited’s publications.
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Pool summary (as of Sep-24 payout)

Months post-securitisation 8
Pool amortisation 44.36%
30+ delinquency (percentage of the initial pool POS) 6.66%
90+ delinquency (percentage of the initial pool POS) 2.18%
Overdue amount (percentage of the initial pool POS) 1.56%
Cumulative Collection Efficiency [CCE] 97.58%
CC (percentage of the balance PTC POS) 12.01%
Cumulative prepayments 5.35%

Detailed description of key rating drivers

Key strengths:
• CCE stood at 97.58% after eight months post-securitisation and the pool has amortised 51.52%.
• CC as a percentage of PTC POS is 12.01%, which remains unutilised, and OC, which is 33.62% of PTC POS.
• Well-defined payment mechanism and adherence to the transaction structure.

Key weakness:
• Moderate delinquency, with OD of 1.56% (as a percentage of initial pool POS) and 90+ DPD of 2.18% (as a percentage of
initial pool POS).

Liquidity: Adequate
Inherent liquidity in the structure is adequate. Interest payouts for Series A1 PTCs are promised monthly, while principal of Series
A1 PTCs is promised to be paid by final legal maturity. In case of delinquencies, payouts are expected to be supported by CE
consisting of CC, principal subordination in the form of OC and EIS.

Applicable criteria
Policy on Default Recognition
CARE Ratings’ methodology for asset/mortgage-backed securitisation

Key rating assumptions

CARE Ratings has analysed the transaction to assess whether the CE is sufficient to cover shortfalls. Since the transaction is
sensitive to the credit quality of the underlying pool, CARE Ratings has analysed the performance of the pool and the overall
portfolio performance of the originator. Considering the borrower profile and the nature of the loan, the pool characteristics and
the portfolio performance, CARE Ratings has taken the average shortfall from 8-10% of POS. The base case shortfalls were
stressed along with other key factors such as the timing of shortfalls, the recovery assumptions, and the time to recovery. CARE
Ratings has found that the CE provided is sufficient to cover shortfalls in a stress scenario commensurate with the assigned rating.
The pool cash flow has been further adjusted for prepayments of underlying loans, assuming monthly prepayments in range of
0.50-1.00%.

About the company and industry

Industry classification
Macroeconomic indicator Sector Industry Basic industry
Financial services Financial services Finance Securitisation

CFL is a non-banking financial company (NBFC) incorporated in 1992. It is a wholly owned subsidiary of Spandana Sphoorty
Financial Limited (SSFL). CFL has historically been disbursing non-qualifying individual unsecured loans and loans against property
(LAP). Its loan products also include personal loans, and interim loans, among others. The company operates in Andhra Pradesh,
Telangana, and recently in Rajasthan for its LAP product. The company was largely held by Padmaja Reddy (SSFL’s founder)
before being acquired by SSFL in FY19, which currently holds a 99.85% equity stake. It obtained NBFC license in February 2019.
The board of CFL consists of directors from SSFL’s board.

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Key financial indicators – Criss Financial Limited

Brief financials FY22 (A) FY23 (A) FY24 (A)

Total income (₹ crore) 101.19 101.41 149.06

PAT (₹ crore) 23.13 1.41 33.49
Loan Book 367.78 509.12 744.06
Net NPA (%) 5.70% 1.46% 0.56%
ROTA (%) 5.54% 0.27% 4.32%
A: Audited; Note: these are latest available financial results

Status of non-cooperation with previous CRA: Not applicable

Any other information: Nil

Rating history for last three years: Annexure-2

Detailed explanation of covenants of rated instruments/facilities: Annexure-3

Complexity level of instruments: Annexure-4

Lender details: Annexure-5

Annexure-1: Details of instruments/facilities:

Coupon Maturity Size of Rating Assigned
Name of the Date of Issuance
ISIN Rate Date (DD- the Issue and Rating
Instrument (DD-MM-YYYY)
(%) MM-YYYY) (₹ crore) Outlook
Pass Through
- 19-01-2024 11.75% 15-09-2025 23.33 CARE A- (SO)
Certificates

Annexure-2: Rating history for last three years:

Current Ratings Rating History

Date(s) Date(s) Date(s)

Name of the
Sr. and Date(s) and and and
Instrument/Bank Amount
No. Rating(s) Rating(s) Rating(s) Rating(s)
Facilities Type Outstanding Rating
assigned assigned in assigned assigned
(₹ crore)
in 2024- 2023-2024 in 2022- in 2021-
2025 2023 2022
1)CARE A-
1)Provisional
Pass Through CARE (SO)
1 LT 23.33 CARE A- (SO) - -
Certificates A- (SO) (31-May-
(19-Jan-24)
24)
*LT: Long Term

Annexure-3: Detailed explanation of covenants of rated instruments/facilities

Not applicable

Annexure-4: Complexity level of instruments rated

Sr. No. Name of Instrument Complexity Level
1. Pass-through certificates Highly complex

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Annexure-5: Lender details

Not applicable

Note on complexity levels of rated instruments: CARE Ratings has classified instruments rated by it based on complexity.
Investors/market intermediaries/regulators or others are welcome to write to [email protected] for clarifications.

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Contact us

Media Contact Analytical Contacts

Name: Mradul Mishra

Name: Sriram Rajagopalan
Director
Director
CARE Ratings Limited CARE Ratings Limited
Phone: +91-22-6754 3596
Phone: +91-22-6754 3652
E-mail: [email protected] E-mail: [email protected]
Relationship Contact Name: Chirag Gambhir
Associate Director
Name: Pradeep Kumar V CARE Ratings Limited
Senior Director Phone: +91-22-6754 3423
CARE Ratings Limited E-mail: [email protected]
Phone: +91-44-2849 0876
E-mail: [email protected] Name: Amulya Bellam
Analyst
CARE Ratings Limited
E-mail: [email protected]

About us:
Established in 1993, CARE Ratings is one of the leading credit rating agencies in India. Registered under the Securities and
Exchange Board of India, it has been acknowledged as an External Credit Assessment Institution by the RBI. With an equitable
position in the Indian capital market, CARE Ratings provides a wide array of credit rating services that help corporates raise capital
and enable investors to make informed decisions. With an established track record of rating companies over almost three decades,
CARE Ratings follows a robust and transparent rating process that leverages its domain and analytical expertise, backed by the
methodologies congruent with the international best practices. CARE Ratings has played a pivotal role in developing bank debt
and capital market instruments, including commercial papers, corporate bonds and debentures, and structured credit.

Disclaimer:
The ratings issued by CARE Ratings are opinions on the likelihood of timely payment of the obligations under the rated instrument and are not recommendations to
sanction, renew, disburse, or recall the concerned bank facilities or to buy, sell, or hold any security. These ratings do not convey suitability or price for the investor.
The agency does not constitute an audit on the rated entity. CARE Ratings has based its ratings/outlook based on information obtained from reliable and credible
sources. CARE Ratings does not, however, guarantee the accuracy, adequacy, or completeness of any information and is not responsible for any errors or omissions
and the results obtained from the use of such information. Most entities whose bank facilities/instruments are rated by CARE Ratings have paid a credit rating fee,
based on the amount and type of bank facilities/instruments. CARE Ratings or its subsidiaries/associates may also be involved with other commercial transactions with
the entity. In case of partnership/proprietary concerns, the rating/outlook assigned by CARE Ratings is, inter-alia, based on the capital deployed by the
partners/proprietors and the current financial strength of the firm. The ratings/outlook may change in case of withdrawal of capital, or the unsecured loans brought
in by the partners/proprietors in addition to the financial performance and other relevant factors. CARE Ratings is not responsible for any errors and states that it has
no financial liability whatsoever to the users of the ratings of CARE Ratings. The ratings of CARE Ratings do not factor in any rating-related trigger clauses as per the
terms of the facilities/instruments, which may involve acceleration of payments in case of rating downgrades. However, if any such clauses are introduced and
triggered, the ratings may see volatility and sharp downgrades.

For detailed Rationale Report and subscription information,

please visit www.careedge.in

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