Fitch Rates Sears Credit Account MT II Ser 2000-3 `AAA'/'AA'.
NEW YORK--(BUSINESS WIRE)--Nov. 2, 2000
Sears Credit Account Master Trust II's $600 million floating-rate class A master trust certificates and $49.00 million floating-rate class B master trust certificates, series 2000-3 are rated `AAA' and `AA', respectively, by Fitch. The corresponding $106.00 million class C certificates are not currently being offered and will be held by Sears Receivables Financing Group, Inc. (SRFG). The certificates are backed by a pool of receivables generated under Sears' revolving credit plans. The ratings are based on the high quality and stability of the receivables pool, subordination of the class B and class C certificates, the strong servicing capabilities of Sears, Roebuck and Co., and the sound legal and cash flow structures.
Credit enhancement for class A totals 20.5% and is provided by the subordination of both the B and C classes. Credit enhancement for class B totals 14% and is provided by the subordination of class C. Several economic stress scenarios were reviewed to determine the appropriate level of credit enhancement for the class A and class B certificates.
Investors are protected from prolonged exposure to deterioration in credit card performance and/or servicer default by the rapid amortization events, which trigger the start of accelerated investor payout. A structural feature present in all Sears transactions is the ability to reallocate finance charges normally allocated to the seller to investors during rapid amortization. This feature creates large amounts of extra collections to cover investor defaults when they are most needed.
Interest will be paid on the 15th of each month, or the following business day, commencing Dec. 15, 2000 and continue throughout the revolving and controlled accumulation periods and on the expected principal payment date, provided an early payout event does not occur. Following the controlled accumulation period, principal is expected to be paid to class A and B certificateholders on the Oct. 2004 and Nov. 2004 distribution dates, respectively. The series termination date is Oct. 16, 2008.
For additional information on Sears Credit Account Master Trust II or other asset-backed issues, please refer to the US Asset-Backed link on Fitch's web site `www.fitchratings.com'.
Fitch is an international rating agency that provides global capital market investors with the highest quality ratings and research. Dual headquartered in New York and London with a major office in Chicago, Fitch rates entities in 75 countries and has some 1,100 employees in more than 40 local offices worldwide. The agency, which is a combination of Fitch IBCA and Duff & Phelps Credit Rating Co., provides ratings for Financial Institutions, Insurance, Corporates, Structured Finance, Sovereigns and Public Finance markets worldwide.
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|Date:||Nov 2, 2000|
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