Insta
Indian Securitisation Market To Remain Stable Despite Demonetisation: Moody’s
Swarajya Staff
Nov 28, 2016, 10:34 AM | Updated 10:33 AM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
The robust economic growth coupled with low oil prices will make India's automobile asset based securities (ABS) or vehicle loans stable, Moody's Investors Service said today (28 November). According to Moody's, the country's securitisation markets will perform in a stable manner with good credit quality across most asset classes. Moody's also expects new Indian auto ABS issued in 2017 to have good credit characteristics.
"In India, robust growth and low oil prices will underpin stable auto ABS performance, despite the economic disruption from the country's demonetisation," said Yian Ning Loh, a Moody's senior vice president. Moody's conclusions are contained in its just-released 2017 outlook for the sector, titled "Structured Finance - India, Korea and Singapore: 2017 Outlook - Performance Stable, Credit Quality Good Across Most Asset Classes".
Moody's keeps the faith in India despite demonetisation. https://t.co/f6qm5nzLqB
— BloombergQuint (@BloombergQuint) November 27, 2016
Moody's expects the performance of Indian commercial vehicle (CV) loans backing auto ABS transactions to remain stable. Delinquency rates will increase somewhat in the very short term owing to the Indian government's decision to withdraw Rs 500 and Rs 1,000 notes. However, delinquencies should return to their current levels over the course of 2017, owing to robust economic growth and low oil prices. Residential mortgage performance should also remain strong in 2017, with low delinquencies reflecting low interest rates, steady house prices and stable prepayment rates.
With inputs from IANS
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.