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Eagle Credit Card Trust Announces the Addition of Fitch Ratings on its Outstanding Notes and Other Possible Changes

August 25, 2014



TORONTO, Aug. 25, 2014 /CNW/ - Eagle Credit Card Trust ("Eagle") announced today that amendments have been made to the Series 2010-2 and Series 2013-1 Co-Ownership Agreements and Supplemental Indentures to allow for changes in the rating agencies on the Series 2010-2 and Series 2013-1 Notes.  Copies of the amendments are available under Eagle's profile on SEDAR at www.sedar.com.

Eagle also announced that Fitch, Inc. ("Fitch") has initiated coverage on Eagle and has issued ratings on the outstanding Series 2010-2 and Series 2013-1 Notes.

The Series 2010-2 and Series 2013-1 Class A Notes are rated 'AAAsf' by Fitch and the Series 2010-2 and Series 2013-1 Subordinated Class B and Class C Notes are rated 'Asf' and 'BBBsf', respectively, by Fitch.  The Series 2010-2 and Series 2013-1 Notes are also rated by DBRS Limited and Moody's Investors Services, Inc. ("Moody's"). 

In April of this year, Moody's released for comment a revised proposed methodology for rating credit card receivables-backed securities.  President's Choice Bank ("PC Bank") is concerned about the potential impact the revised methodology may have on the Moody's ratings of the Eagle Series 2010-2 and Series 2013-1 Notes.  In particular, PC Bank is concerned that the Moody's proposed revised rating methodology may not provide sufficient credit for the strong historical performance, especially the high quality customer composition which results in high payment rates for the PC Bank credit card portfolio in which Eagle has an interest, and places increased reliance on a Moody's rating on PC Bank.  At the present time, neither PC Bank nor PC Bank's parent, Loblaw Companies Limited, is rated by Moody's.  In light of uncertainty around the potential impact of the proposed revised Moody's methodology on the Moody's rating of the Series 2010-2 and Series 2013-1 Notes, Eagle is also announcing today that it is considering requesting that Moody's withdraw its ratings on the Series 2010-2 and Series 2013-1 Notes in the future. 

Eagle was established to purchase undivided co-ownership interests in a revolving pool of credit card receivables of PC Bank, a wholly-owned subsidiary of Loblaw Companies Limited.  The receivables are generated from the use of President's Choice Financial MasterCard® credit cards.

SOURCE Eagle Credit Card Trust


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