Printer Friendly

DISCOVER $833 MILLION CREDIT CARD MASTER TRUST 1993-2 RATED 'AAA/A' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Dec. 2 /PRNewswire/ -- Discover Card Master Trust I, series 1993-2 $800 million 5.4% class A credit card pass-through certificates are rated "AAA" by Fitch. The $33.3 million 5.75% class B credit card pass-through certificates are rated "A." In addition, the series 1993-1 and 1993-3 ratings for class A and B certificates are affirmed at "AAA" and "A," respectively, indicating that issuance of the new series does not result in a reduction or withdrawal of those ratings.
 The "AAA" rating on the class A certificates reflects the high quality of the receivables from Discover Card accounts, the credit enhancement totaling 6.5% of the initial invested amount, and the sound legal and financial structure. Credit enhancement is provided by the 4% subordination of the class B certificates and the 2.5% shared cash collateral account (CCA).
 Class B's "A" rating reflects the 3.5% credit enhancement provided by the 2.5% shared CCA and the 1.0% CCA available solely to support class B. Class B defaults may be covered by the amounts available in the shared CCA after class A requirements are met.
 Interest will be distributed on the 15th of each month, or the next business day, beginning Dec. 15, 1993. The revolving period (interest only) should continue for 53 months, until the end of April 1998. Following the revolving period, principal will be collected and should be distributed to class A in 12 equal monthly payments of $66.7 million beginning on June 15, 1998. The expected final payment date for class A is May 15, 1999. After the class A certificateholders are paid, class B certificateholders will receive principal payments and are expected to be paid in full on June 15, 1999. If an amortization event occurs, principal repayment to investors would be accelerated.
 Investors are protected from prolonged exposure to a deterioration in credit card performance and/or servicer default by the early amortization triggers. Additional investor protection against credit losses is provided by the overallocation of finance charge collections to investors during amortization. This overallocation provides increasing amounts of finance charge collections to investors when they are most needed to cover chargeoffs.
 Greenwood Trust Co., which is an excellent servicer, will be responsible for servicing, managing, and making collections on the receivables. The legal structure of the transaction helps to ensure that the insolvency of Greenwood or of Dean Witter, Discover & Co. would not interrupt timely payment of principal and interest to investors.
 -0- 12/2/93
 /CONTACT: David R. Howard, 212-908-0677, or Gracen Fraser, 212-908-0520, both of Fitch/


CO: ST: IN: FIN SU: RTG

TW -- NY061 -- 9810 12/02/93 12:15 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 2, 1993
Words:444
Previous Article:DUFF & PHELPS REVIEWS OVERALL CREDIT QUALITY OF BANK INDUSTRY
Next Article:UNITED STATES GYPSUM COMPANY AND SPRINGFIELD, ILL., UTILITY SIGN SYNTHETIC-GYPSUM PURCHASE AGREEMENT
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters