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DUFF & PHELPS REAFFIRMS RATINGS ON SEARS CREDIT ACCOUNT TRUSTS

 CHICAGO, Aug. 3 /PRNewswire/ -- Sears recently announced that effective Aug. 1, 1993, it would begin accepting VISA, MasterCard, and American Express cards for purchases at Sears' stores. The impact of this action has been reviewed by Duff & Phelps, and all 16 outstanding Sears Credit Account Trusts, which are credit card backed-securities, have been reaffirmed with ratings of 'AAA' (Triple A).
 The acceptance of other credit cards at Sears stores could possibly cause a decline in the volume of SearsCharge receivables over time. However, Sears will continue to originate SearsCharge accounts and has improved and updated its SearsCharge "Rapid Credit" program to qualify customers for a SearsCharge. Sears will also continue to aggressively market the SearsCharge card as the first choice among customers, because of its many attractive features including no annual fee, low monthly payments, and 30-day grace period on payments. Sears estimates that it has approximately 50 million accounts and 70 million outstanding cards. Sears expects to add over five million new accounts in 1993.
 Duff & Phelps monitors, on a monthly basis, each Sears Credit Account Trust and tracks key information such as receivables volume, losses, yields, payment rates, investor balances, and excess spreads. Each Sears Credit Account Trust is structured to provide multiple protection features to investors, including a requirement to add additional receivables in the event specified minimums are breached. Historically, Sears has added accounts 14 times to several of the outstanding trusts and has exhibited a great willingness to support these investor protection features. The amount of available unused accounts which could be added if necessary is sufficient due to the maturity of several older trusts, the availability of unsecuritized receivables, and the ongoing generation of new accounts.
 Included as a protection feature is an early amortization event trigger whereby if receivables volume falls below specific levels, the trust will simply enter an early amortization period and investors will be paid off early. As of the July 1993 distribution date, the weighted- average cushion above the trigger levels for all trusts is approximately 18 percent (based upon outstanding total receivables) with ranges from 3.5 percent to 87.5 percent.
 Information is available on Sears performance on Bloomberg (DPI /GO/), or by calling the Duff & Phelps Research and Monitoring Group at 312-368-3147.
 -0- 8/3/93
 /CONTACT: Laura M. Ladewski of Duff & Phelps Credit Rating Co., 312-368-3186/
 (S)


CO: Sears Credit Account Trusts ST: Illinois IN: FIN SU: RTG

LD -- NY088 -- 9064 08/03/93 16:40 EDT
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Publication:PR Newswire
Date:Aug 3, 1993
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