Fitch Assigns Discover Bank Credit Card ABS Seller/Servicer Rating.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 assigns Discover Bank (Discover) an 'ABPSS 2+' ABS Seller/Servicer rating for its credit card operations. The rating is based on the company's experienced management team, exceptional customer service, effective use of technology, and comprehensive operational risk management. The rating also reflects the financial strength of Discover's parent, Morgan Stanley  To comply with Wikipedia's , the introduction of this article needs a complete rewrite. . Discover was established in 1985. As of November 2006, Discover managed a general purpose credit card portfolio of $45.647 billion, making it the 6th largest issuer of consumer credit cards in the U.S. The Discover Card is accepted by merchants via its proprietary Discover Network. Since 1990, the bank has issued a total of 60 ABS credit card series under its Discover Card Master Trust I (DCMTI) with a current total invested amount of $24.68 billion. The performance variables of DCMT DCMT Document DCMT Department of Combat Medic Training DCMT Diploma in Complete Mind Therapy DCMT Decrement DCMT Delay-Constrained Multicast Tree I have remained relatively stable, and within Fitch's expectations for the trust. In December 2006, Morgan Stanley announced its intention to spin off Discover Bank in mid-2007. Fitch's Financial Institutions Group currently rates Morgan Stanley 'AA-' with a Negative Outlook and has placed Discover bank's 'AA-' rating on Rating Watch Negative. (See Fitch's Rating Action Commentary dated Dec. 19, 2006.) The announcement and its potential effects were considered when determining the current seller/servicer rating. Fitch's Financial Institutions Group has indicated that they anticipate that Discover Bank would be rated in the 'BBB' range on a standalone basis. In that event, it is likely Discover's seller/servicer rating would be lowered by one notch. As the spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. date approaches Fitch expects to reevaluate the seller/servicer rating. Fitch rates ABS seller/servicers on a scale of 1 to 5, with 1 (no '1+') being the highest rating. Within each of these rating levels, Fitch further differentiates ratings by plus (+) and minus (-) as well as the flat rating. For further information on Fitch ABS seller/servicer ratings, refer to the report titled 'ABS Seller/Servicer Rating: Credit Where Credit Is Due,' dated Sept. 14, 2004 and 'Rating ABS Seller/Servicers: Credit Card Addendum addendum n. an addition to a completed written document. Most commonly this is a proposed change or explanation (such as a list of goods to be included) in a contract, or some point that has been subject of negotiation after the contract was originally proposed by ,' dated Jan. 18, 2006, both available on the 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. web site at www.fitchratings.com. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other 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 the 'Code of Conduct' section of this site. |
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