Printer Friendly

Fitch Rates Sears Credit Account MT II Ser 2001-1 `AAA/AA'.

Business Editors

NEW YORK--(BUSINESS WIRE)--March 8, 2001

Sears Credit Account Master Trust II's $600 million floating-rate class A master trust certificates and $49 million floating-rate class B master trust certificates, series 2001-1 are rated `AAA' and `AA', respectively, by Fitch. The corresponding $106 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 April 16, 2001 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 certificate holders on the February 2006 and March 2006 distribution dates, respectively. The series termination date is Feb. 16, 2010.

For additional information on Sears Credit Account Master Trust II or other asset-backed issues, please refer to the US Asset-Backed link at Fitch's web site at `'.
COPYRIGHT 2001 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2001, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Mar 8, 2001
Previous Article:Intel Selects Questra as Premier Provider; Companies to Work Together in Advanced Technology Development Program.
Next Article:NorAm Gaming & Entertainment Inc. Enters Into Agreement to Purchase 45% Interest in Honduras Slot Operation for $1.6 Million.

Related Articles
Sears Credit Account MT II $400M Series 1999-3 Expected 'AAA' by Fitch IBCA.
Sears Credit Account MT II Ser 2000-1 Expected `AAA'/`AA' By Fitch.
Conseco Finance HEL Ctfs Ser 2001-A Rated By Fitch.
Fitch Ratings Expects To Rate Sears Credit Account MT II 2002-1 'AAA/AA'.
Fitch Rates Sears Credit Account MT II Ser 2002-1 'AAA'/'AA'.
Fitch Rates Sears Credit Account MT II Series 2002-2 'AAA/AA'.
Fitch Rates Sears Credit Account MT II Ser 2002-3 'AAA'/'AA'.
Fitch Ratings Downgrades Sears Master Trust II Subordinate Notes.
Synthetic multi-sector CBOS.
Fitch Ratings Affirms Davis Square Funding II, Ltd.

Terms of use | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters