Fitch Affirms $67.9B in U.S. Credit Card ABS Following B of A/MBNA Announcement.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. affirms the classes A, B, and C ratings assigned to all outstanding series issued by the BA Master Credit Card Trust, Fleet Credit Card Master Trust II, MBNA MBNA Monument Builders of North America MBNA Mercedes-Benz North America MBNA Maryland Bank, National Association MBNA Maryland Bank North America MBNA Mount Baker Nurses Association (Bellingham, Washington) Credit Card Master Note Trust, and the MBNA Master Credit Card Trust II, including MBNA's series 2001-Emerald notes following Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. Corporation's (BAC BAC abbr. blood alcohol concentration ) announced purchase of MBNA Corporation (MBNA). The affirmation A solemn and formal declaration of the truth of a statement, such as an Affidavit or the actual or prospective testimony of a witness or a party that takes the place of an oath. An affirmation is also used when a person cannot take an oath because of religious convictions. affects approximately $67.9 billion of credit card debt Credit card debt is an example of unsecured consumer debt, accessed through ISO 7810 plastic credit cards. Debt results when a client of a credit card company purchases an item or service through the card system. . The transaction is expected to close in December 2005 pending regulatory approval. The affirmation reflects the quality of the receivables generated by the respective credit card trusts' cardholders, available credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing provided by subordination, each transaction's sound legal and cash flow structures, and strong servicing capabilities provided by Bank of America, N.A. and MBNA America Bank, N.A. Following the acquisition, BAC will become the largest credit card issuer in the U.S. and worldwide with 20% market share based on receivables. The combined entity would have approximately $143.2 billion in outstanding receivables and roughly 69 million total cardholders. Not only will the acquisition improve BAC's position within the credit card industry, MBNA's prime credit quality portfolio fits well with BAC's portfolio and business strategy. However, uncertainty remains with respect to the future of MBNA's agent bank relationships or relationships with other financial institutions. Currently, MBNA operates credit card programs on behalf of financial institutions and it is questionable as to whether such institutions may prefer not to deal with BAC, a direct competitor, and terminate such contracts. As of June 30, 2005, the MBNA Credit Card Master Trust II contained roughly $66.6 billion in principal receivables which supported approximately $61.1 billion in outstanding investor certificates and notes. Collateral performance metrics Performance metrics are measures of an organizations activities and performance. Performance metrics should support a range of stakeholder needs from customers, shareholders to employees [1]. continue to be within Fitch's expectations. For the collection period ending May 31, 2005, yield, monthly payment rate (MPR (MultiProtocol Router) Software from Novell that provides router capabilities for its NetWare servers. It supports IPX, IP, AppleTalk and OSI protocols as well as all the major LANs and WANs. ), and chargeoffs registered 19.6%, 18.1%, and 5.9%, respectively. Three-month excess spread, which can be used to gauge the overall health of the trust, has remained strong, averaging 8.4% for the last 12 months. With respect to year-over-year performance, trust variables (yield, MPR, chargeoffs, 60+ delinquencies, and three-month excess spread) continue to exhibit stability and perform better than industry standards. For the 12-month period ended May 2005, yield, MPR, chargeoffs, and three-month excess spread averaged 18.2%, 16.8%, 5.3%, and 8.4%, respectively. The industry average for the corresponding performance variables, as measured by the Fitch fitch: see polecat. Credit Card Index, was 17.7%, 18.3%, 6.4%, and 6.2%, respectively. Following last week's announcement, Fitch placed all unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. ratings of MBNA Corporation and its affiliates on Rating Watch Positive and affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. all ratings with respect to Bank of America Corporation. Upon closing, which is expected to occur in December 2005, it is expected Fitch's Financial Institutions group will align align (  līn),v to move the teeth into their proper positions to conform to the line of occlusion. MBNA's unsecured corporate ratings with those of BAC. The following are affirmed: BA Master Credit Card Trust Series 1999-C Series 2001-A Fleet Credit Card Master Trust II Series 2000-C Series 2000-D Series 2001-A Series 2001-B Series 2002-B Series 2002-C Series 2003-A MBNA Credit Card Master Note Trust Class A 2001-1 Class A 2001-2 Class A 2001-3 Class A 2001-Emerald Class A 2001-5 Class A 2002-1 Class A 2002-2 Class A 2002-3 Class A 2002-4 Class A 2002-5 Class A 2002-7 Class A 2002-8 Class A 2002-9 Class A 2002-10 Class A 2002-11 Class A 2002-12 Class A 2002-13 Class A 2003-1 Class A 2003-2 Class A 2003-3 Class A 2003-4 Class A 2003-5 Class A 2003-6 Class A 2003-7 Class A 2003-8 Class A 2003-9 Class A 2003-10 Class A 2003-11 Class A 2003-12 Class A 2004-1 Class A 2004-2 Class A 2004-3 Class A 2004-4 Class A 2004-5 Class A 2004-6 Class A 2004-7 Class A 2004-8 Class A 2004-9 Class A 2004-10 Class A 2005-1 Class A 2005-2 Class A 2005-3 Class B 2001-1 Class B 2001-2 Class B 2001-3 Class B 2002-1 Class B 2002-2 Class B 2002-3 Class B 2002-4 Class B 2003-1 Class B 2003-2 Class B 2003-3 Class B 2003-4 Class B 2003-5 Class B 2004-1 Class B 2004-2 Class B 2005-1 Class C 2001-1 Class C 2001-2 Class C 2001-3 Class C 2001-4 Class C 2001-5 Class C 2002-1 Class C 2002-2 Class C 2002-3 Class C 2002-4 Class C 2002-5 Class C 2002-6 Class C 2002-7 Class C 2003-1 Class C 2003-2 Class C 2003-3 Class C 2003-4 Class C 2003-5 Class C 2003-6 Class C 2003-7 Class C 2004-1 Class C 2004-2 Class C 2005-1 MBNA Credit Card Master Trust II Series 1995-C Series 1996-B Series 1996-G Series 1996-M Series 1997-B Series 1997-D Series 1997-H Series 1997-K Series 1997-O Series 1998-B Series 1998-E Series 1998-F Series 1998-G Series 1999-B Series 1999-D Series 1999-J Series 1999-L Series 2000-D Series 2000-E Series 2000-G Series 2000-H Series 2000-I Series 2000-J Series 2000-K Series 2000-L Series 2001-A Series 2001-B Series 2001-C Fitch's rating definitions are available on the agency's public web site, www.fitchratings.com. Published ratings, criteria and methodologies and relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from this site, at all times. This document will remain on the public site for seven days. |
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