SKS Microfinance Ltd on Thursday announced the completion of the first rated pool assignment (securitisation) for the microfinance sector after the notification of the Malegam Committee recommendations. The rated pool assignment transaction of Rs 50 crore comprises 65,438 contracts rated PR1+(SO) by CARE, with YES Bank. This assignment follows the securitisation of a pool of Rs 550 crore with assignee banks earlier this month.
In a press release, Mr S. Dilli Raj, CFO – SKS Microfinance Ltd, said, “The development reiterates SKS Microfinance's leadership position in the MFI sector and the confidence of the financial world in the MFI model followed by the company.”
Instruments with a PR1+ (SO) rating are considered to have a strong capacity for timely payment of short-term debt obligations and carry the lowest credit risk.