Fitch Ratings Upgrades Metris Master Trust's $650MM Class A/B/C Securities.Business Editors NEW YORK--(BUSINESS WIRE)--May 14, 2004 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. upgrades the class A, B and C securities of the below listed series issued from Metris Master Trust. The actions affect approximately $650 million of credit card backed securities. The securities are backed by a pool of Visa and MasterCard receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed originated by Direct Merchants Credit Card Bank, N.A. and sold to Metris Master Trust through Metris Receivables, Inc. The rating actions do not impact any trust issued series that are insured by MBIA MBIA Montana Building Industry Association MBIA Municipal Bond Insurance Association MBIA Michigan Boating Industries Association MBIA Municipal Bond Investors Assurance MBIA Massachusetts Brain Injury Association MBIA Maryland Business Incubation Association , Inc. Rating actions: Metris Master Trust, floating-rate asset-backed securities Asset-backed security A security that is collateralized by loans, leases, receivables, or installment contracts on personal property, not real estate. asset-backed security A debt security collateralized by specific assets. , series 2001-3 -- $484.81 million class A floating-rate securities to 'AAA' from 'A-'; -- $86.19 million class B floating-rate securities to 'AAA' from 'BB+'; -- $79.01 million class C floating-rate secured notes to 'AAA' from 'B'. The rating actions are due to a cash defeasance defeasance n. an antiquated word for a document which terminates the effect of an existing writing such as a deed, bond, or contract if some event occurs. DEFEASANCE, contracts, conveyancing. of the series in an amount equal to 100% of the aggregate outstanding invested amount of class A, B, and C. The defeasance eliminates servicing and receivable performance risks as the cash is held in the principal funding account (to cover principal) and the accumulation period Accumulation Period 1. The phase in an investor's life when he/she builds up his/her savings and the value of his/her investment portfolio with the intention of having a nest egg for retirement. 2. reserve account (to cover interest) for the sole benefit of security-holders. The securities are scheduled to be paid in August and September 2004. Fitch's assessment also included investment and account restrictions, in addition to the adequacy of separate interest and principal account sizing. |
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