Friday, September 14, 2018

High fuel prices hitting auto loan repayments; Performance worsened in Q2: Moody's

Mumbai, Sept 12: Auto loan performance in India worsened in the second quarter of 2018 compared with the first quarter, with higher fuel prices weighing on the ability of auto loan borrowers to repay debt, Moody's Investors Service said in a report.
"We expect auto loan delinquencies to remain at current levels or deteriorate slightly for the rest of 2018, with the effects of higher fuel prices on auto loan borrower counterbalanced by strengthening economic activity to some degree," Moody's said.
The performance for auto loan asset class showed some deterioration in India, with higher fuel prices weighing on the ability of borrowers to repay debt, said Vincent Tordo, a Moody's Analyst.
Asset-backed securities
Moody's said the issuance of Indian asset backed securities (ABS) backed by commercial vehicle loans, construction equipment loans and auto loans, declined to about Rs,250 billion in the fiscal year ended March 2018 from Rs.265 billion in the fiscal year ended March 2017.
Commercial vehicle sales in India increased by 51.6% in the three months ended June 30, 2018, compared with the same period a year earlier, Moody's said in the report. (The Hindu)

No comments:

Post a Comment