DUFF & PHELPS: MBNA MASTER CREDIT CARD TRUST SERIES 1993-4 $1,000,000,000 FLOATING RATE ASSET BACKED CERTIFICATES RATED 'AAA'
CHICAGO, Dec. 7 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned the MBNA Master Credit Card Trust 1993-4 asset-backed certificates a rating of "AAA" (Triple-A). Interest payments will be made on the 15th day of each month beginning on Jan. 18, 1994. The certificate interest rate is equal to one month LIBOR plus 0.25 percent, subject to a maximum rate of 12 percent. Certificateholders will receive interest-only payments during the revolving period, with principal payments commencing in July 1998 or earlier upon the occurrence of a "Pay Out Event". The trust consists of approximately $6.7 billion of receivables from MBNA America Bank, National Association consumer revolving credit card accounts. The "AAA" rating is based on the credit quality of the receivables, the legal structure of the transaction, the servicing capabilities of MBNA America Bank, National Association and the 10.5 percent ($105,000,000) cash collateral account. Duff & Phelps performed an analysis of the projected cash flows under various economic scenarios stressing projected yields, payment and purchase patterns, and charge- off rates. The results of these analyses showed the cash collateral amount is sufficient to cover potential decreases in yield and/or increases in charge-offs and the resulting cash flow shortfalls. MBNA America Bank, National Association has sold a portion of its credit card portfolio to the MBNA Master Credit Card Trust which has issued these certificates. The Series 1993-4 certificates are the eighth series of certificates to be issued from this master trust. Credit support against possible losses is provided for the Series 1993-4 certificates by a cash collateral account in an amount equal to 10.5 percent of the principal amount of the certificates. Other similar floating rate transactions issued by MBNA have had 12 percent cash collateral accounts as credit enhancement. Duff & Phelps is comfortable with the 10.5 percent cash collateral account for this series. In addition, if an economic pay out event occurs, the cash collateral account will be drawn upon, and the funds will be passed through to investors. Duff & Phelps rates MBNA Master Credit Card Trust Series 1991-1, Series 1992-1, Series 1992-2, Series 1992-3, Series 1993-1, Series 1993-2, and Series 1993-3 each "AAA" (Triple A). The ratings of the 1991-1, 1992-1, 1992-2, 1992-3, 1993-1, 1993-2, and 1993-3 certificates are reaffirmed with the concurrent issuance of the Series 1993-4 certificates. The MBNA America Bank, National Association's portfolio of accounts, from which the receivables for the Master Trust were selected, is of high quality, with current gross charge-offs of approximately 3.49 percent (annualized) as of Sept. 30, 1993. The pooled accounts have an average principal balance of $1,301. The average age of the accounts is approximately 41 months. The three states with the highest concentration of account balances are California (15.0 percent), Texas (6.8 percent), and New York (6.4 percent). -0- 12/7/93 /CONTACT: Laura M. Ladewski of Duff & Phelps Credit Rating Company, 312-368-3186/ CO: MBNA Master Credit Card Trust; MBNA America Bank, National Association ST: IN: FIN SU: RTG
MP -- NY090 -- 1448 12/07/93 16:57 EST
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|Date:||Dec 7, 1993|
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