Fitch Ratings has rated --
Key Rating Drivers:
Fitch's ratings are based on the underlying receivables pool, available credit enhancement,
The transaction structure is the same as class A (2010-1), with credit enhancement totaling 31.75 percent for class A.
Fitch models three different scenarios when evaluating the rating sensitivity compared to expected performance for credit card asset- backed securities transactions: 1) increased defaults; 2) a reduction in purchase rate; and 3) a combination stress of higher defaults and lower monthly payment rate (MPR).
Increasing defaults alone has no impact on rating migration even in the most severe scenario of a 75 percent increase in defaults. The rating sensitivity to a reduction in purchase rate also does not result in rating migration even in the most severe scenario of a 100 percent reduction in purchase rate. The harshest scenario assumes both stresses to defaults and MPR to occur simultaneously. The ratings would only be downgraded under the severe stress of a 75 percent increase in defaults and 35 percent reduction in MPR.
To date, the transactions have exhibited strong performance with all performance metrics within Fitch's initial expectations. For further discussion of our sensitivity analysis, please see the related presale report. For a discussion of the representations, warranties, and enforcement mechanisms available to investors in this transaction please see the related presale appendix.
The presale report is available to all investors on Fitch's website at fitchratings.com. For more information about Fitch's comprehensive subscription service FitchResearch, which includes all presale reports, surveillance, and credit reports on more than 20 asset classes, contact product sales at +1-212-908-0800 or at email@example.com.
Additional information is available at fitchratings.com.
Applicable criteria available at fitchratings.com:
--'Global Credit Card ABS Rating Criteria' (June 2013);
--'Global Structured Finance Rating Criteria' (May 2013).
Global Credit Card ABS Rating Criteria
Global Structured Finance Rating Criteria
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Fitch Ratings has rated