New Delhi: Moody's Investors Service today said the performance of auto asset-backed securities levelled off in January after deterioration due to the currency crunch post demonetisation.
The performance of rated Indian auto asset-backed securities (ABS) is not expected to deteriorate beyond March 2017 as the economy recovers and oil prices remain range-bound and budget policy initiatives provide support, Moody's said in a statement.
The signs of stabilisation appeared in January 2017, with collection efficiency rising half a percentage point to 93 per cent from December 2016, but was still 1.9 percentage points lower than the average in the three months to October 2016, it said.
"In January 2017, all transactions collected more funds than the amount they needed to pay interest and principal to investors. Signs of stabilisation appeared in January 2017," Moody's said.
The stabilisation of auto asset-backed loans further supports the view that deterioration in the performance of the 15 Indian auto ABS transactions that Moody's rates will not extend beyond March 2017, it added.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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