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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Pass Through Certificates (PTCs) | 8.38 | Not Applicable | Withdrawn | - |
| Total Outstanding Quantum (Rs. Cr) | 0.00 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 8.38 | - | - |
| Rating Rationale |
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Acuité has withdrawn the rating on the Pass Through Certificates (PTCs) of Rs. 8.38 Cr. issued by Northern Arc 2021 UBL Tigray under a securitisation transaction originated by Moneyboxx Finance Limited (MFL) (The Originator). The PTCs are backed by a pool of unsecured business loans with principal outstanding of Rs. 9.86 Cr (including Rs. 1.48 Cr of over collateralisation).
The transaction has been paid in full. It has also been redeemed and all the contractual obligations and pay-outs to the investors have been duly completed. Hence, the rating is being withdrawn. The rating withdrawal is in accordance with Acuité's policy on withdrawal of rating and pursuant to a request received from the company in this regard. |
| About the Originator |
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MoneyBoxx Finance Limited (MFL) is a BSE Listed NBFC providing small ticket loans to micro and small enterprises. It commenced its operations in February 2019 and is promoted by Mr Deepak Aggarwal and Mr Mayur Modi. As on August 31, 2022, it operates in 5 states, i.e., Rajasthan, Haryana, Madhya Pradesh, Punjab and Uttar Pradesh through its branch network of 39 branches. The company is registered with RBI as Non-systematically Important NBFC engaged in lending and allied activities. The entity focuses on small ticket unsecured business loans to individual borrowers and has also started extending secured business loans since Q1FY23. As on June 30, 2022, MFL has 393 employees and 12,975 active borrowers with cumulative disbursements of Rs. ~270 Cr. till August, 2022.
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| Assessment of the Pool |
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Not applicable
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| Credit Enhancements (CE) |
| Not applicable |
| Transaction Structure |
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Not applicable
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| Assessment of Adequacy of Credit Enhancement |
| Not applicable |
| Legal Assessment |
| Not applicable |
Key Risks
| Counter Party Risks |
| Not applicable
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| Concentration Risks |
| Not applicable
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| Servicing Risks |
| Not applicable
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| Regulatory Risks |
| Not applicable
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| Prepayment Risks |
| Not applicable
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| Commingling Risk |
| Not applicable
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| Rating Sensitivity |
| Not applicable |
| Material Covenants |
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Not applicable
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| Liquidity Position |
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Not applicable
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| Outlook: Not Applicable |
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| Key Financials - Originator | ||||||||||||||||||||||||||||||||||||||||
*Total income equals to Net Interest Income plus other income.
Status of Non Cooperation with Other CRA None |
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| Any Other Information |
| None |
| Applicable Criteria |
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• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Securitized Transactions: https://www.acuite.in/view-rating-criteria-48.htm |
| Note on Complexity Levels of the Rated Instrument |
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In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.
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