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Fitch Rates Sears Credit Account MT II Series 2002-3 Class Ax 'AAA'.

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Sears Credit Account Master Trust II's $400 million floating-rate class A(X) master trust certificates, series 2002-3 are rated 'AAA' by Fitch Ratings. The corresponding $33.3 million class B and $79.521 million class C certificates issued in conjunction with the class A(x) certificates are not currently being offered and will be held by Sears Receivables Financing Group, Inc. (SRFG). After given affect to this issuance, the total amount of class B and c certificates will equal $73.8 and $180.47 million, respectively. 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 total 22% and is provided by the subordination of class B and class C certificates. 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.

Class A certificate holders will receive monthly interest payments of 29 basis points (bps) over one-month LIBOR throughout the revolving period and controlled accumulation period. Interest will be paid monthly, commencing Jan. 15, 2003 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 the class A certificate holders on the May 15, 2012 distribution date. The series termination date is May 17, 2016.

For additional information on Sears Credit Account Master Trust II or other asset-backed issues, please refer to the US Asset-Backed link on the Fitch Ratings web site at ''.
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Publication:Business Wire
Geographic Code:1USA
Date:Dec 3, 2002
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