Securitised pool collections healthy despite macro headwinds: CRISIL

Despite macroeconomic challenges like elevated commodity costs, interest rates and energy prices in recent months, monthly collection ratios (MCRs) of securitised pools rated by CRISIL Ratings have remained largely unaffected.

Retail borrowers in the securitised pools have been demonstrating a strong repayment record benefiting from traction in economic activity.

“In the past few months, retail borrowers have faced challenges like higher interest rates and inflation,” said Krishnan Sitaraman, Senior Director and Deputy Chief Ratings Officer, CRISIL Ratings.

Mortgage-backed securitisation (MBS) pools displayed median MCRs (refer to chart in annexure) of 100 per cent during the

pay-out months of April-July 2022, reflecting the inherent strength and reliability of property-backed loans as a retail

asset class.

Collections of commercial vehicle (CV) loan pools saw a slight sequential dip from the peak of 105 per cent during the April

2022 pay-outs, but remained robust at 98 per cent due to better freight realisations despite higher fuel costs.

Moderation in tax and duties on crude derivatives lightened the burden of the higher cost of energy in the international

market on end consumers.

Also, seasonal demand for CVs increased capacity utilisation, resulting in higher-than-average realisations for vehicle owners.

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