KEY RATING DRIVERS
Fitch's expected ratings are based on the underlying receivables pool, available credit enhancement, World's
The transaction structure is similar to series 2014-I, with credit enhancement totaling 15% for class A, credit enhancement of 7% for the class B, credit enhancement of 2.75% plus an amount from a spread account for the class C, and credit enhancement of an amount from a spread account for the class D notes only.
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 monthly payment rate (MPR), and 3) a combination stress of higher defaults and lower MPR.
Increasing defaults alone has the least impact on rating migration even in the most severe scenario of a 75% increase in defaults. The rating sensitivity to a reduction in MPR is more pronounced with a moderate stress, of a 25% reduction, leading to possible downgrades across all classes. The harshest scenario assumes both stresses occur simultaneously. Similarly, the ratings would only be downgraded under the moderate stress of a 40% increase in defaults and 20% reduction in MPR; however, the severe stress could lead to more drastic downgrades to all classes.
To date, the transaction has exhibited strong performance with all performance metrics within Fitch's initial expectations. For further discussion of Fitch's sensitivity analysis, please see the presale report related to the transaction listed above.
The presale report is available to all investors on Fitch's corporate site 'www.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 'firstname.lastname@example.org'.
Additional information is available at 'www.fitchratings.com'.
--'Global Credit Card ABS Rating Criteria' (
--'Global Structured Finance Rating Criteria' (
Global Credit Card ABS Rating Criteria
Global Structured Finance Rating Criteria
Source: Fitch Ratings
Most Popular Stories
- Bently Creates Alabama Small Business Commission
- Is Alibaba's IPO Price a Fairytale?
- Kardashian: Kanye Never Told Fan in Wheelchair to Stand Up
- Los Angeles Angels Clinch Playoff Spot
- U.S. Producer Prices Held Steady in August
- When to Say No to Investors, Yes to Mentors
- U.S. Tobacco Growers Lose Last of Price Supports
- Scottish Leaders Scramble for Votes on Independence
- Sanctions Push Russian Ruble to Historic Low
- ISIS Grew Strong as al-Qaida Weakened