Fitch Ratings has upgraded 45 tranches of subordinate
notes issued out of the MBNA Credit Card Master Note Trust and MBNA
Master Credit Card Trust II, which had been placed on Rating Watch
Positive on Jul. 13, 2005. The actions affect approximately $5.29
billion of credit card-backed securities. The receivables are backed
by a pool of Visa, MasterCard and American Express receivables
originated by MBNA America Bank and sold to the MBNA Credit Card
Master Note Trust and MBNA Master Credit Card Trust II.
The upgrades reflect MBNA's assignment of an ABS seller/servicer rating of 'ABPS/S 1-' by Fitch on July 7, 2005. Taking into account the top tier ABS seller/servicer rating under Fitch's revised assumptions and stresses, available credit enhancement adequately protects investors during early amortization to stressed levels consistent with the new ratings assigned.
The action follows Bank of America's completed acquisition of MBNA on Jan. 1 2006. Going forward, Fitch expects that the accounts and receivables backing the master trusts will continue to be serviced on legacy MBNA platforms and systems at their existing servicing centers. The action also follows Fitch's evaluation of the impact of bankruptcy filings on the receivables pool and Fitch's determination that filings peaked in the December 2005 reporting period, when charge-offs increased by 500 basis points. In the coming months, Fitch expects losses to trend lower and return to historically observed levels in the second half of the year.
Fitch rates ABS seller/servicers on a scale of 1 to 5, with 1 being the highest rating. Within each of these rating levels, Fitch further differentiates ratings by plus (+) and minus (-) as well as the flat rating. For further information about Fitch ABS seller/servicer ratings, see the report 'ABS Seller/Servicer Rating: Credit Where Credit Is Due,' dated Sept. 14, 2004 and 'ABS Seller/Servicer Rating: Credit Card Addendum,' dated Jan. 18, 2006, available on the Fitch Ratings web site at 'www.fitchratings.com'.
Fitch upgrades MBNA Master Credit Card Trust II floating-rate asset-backed securities as follows:
Series 1996-B
-- $42,500,000 collateral interest to 'BBB+' from 'BBB'.
Series 1996-G
-- $37,500,000 collateral interest to 'BBB+' from 'BBB'.
Series 1996-M
-- $37,500,000 collateral interest to 'BBB+' from 'BBB'.
Series 1997-B
-- $75,000,000 collateral interest to 'BBB+' from 'BBB'.
Series 1997-D
-- $34,231,000 collateral interest to 'BBB+' from 'BBB'.
Series 1997-H
-- $44,770,000 collateral interest to 'BBB+' from 'BBB'.
Series 1997-O
-- $37,500,000 collateral interest to 'BBB+' from 'BBB'.
Series 1998-B
-- $48,530,000 collateral interest to 'BBB+' from 'BBB'.
Series 1998-E
-- $66,200,000 collateral interest to 'BBB+' from 'BBB'.
Series 1998-G
-- $56,250,000 collateral interest to 'BBB+' from 'BBB'.
Series 1999-B
-- $56,250,000 collateral interest to 'BBB+' from 'BBB'.
Series 1999-D
-- $37,500,000 collateral interest to 'BBB+' from 'BBB'.
Series 1999-J
-- $75,000,000 collateral interest to 'BBB+' from 'BBB'.
Series 1999-L
-- $56,250,000 collateral interest to 'BBB+' from 'BBB'.
Series 2000-D
-- $63,750,000 collateral interest to 'BBB+' from 'BBB'.
Series 2000-E
-- $45,000,000 collateral interest to 'BBB+' from 'BBB'.
Series 2000-H
-- $52,500,000 collateral interest to 'BBB+' from 'BBB'.
Series 2000-J
-- $50,250,000 collateral interest to 'BBB+' from 'BBB'.
Series 2000-L
-- $37,500,000 collateral interest to 'BBB+' from 'BBB'.
Series 2001-A
-- $93,750,000 collateral interest to 'BBB+' from 'BBB'.
Series 2001-B
-- $56,250,000 collateral interest to 'BBB+' from 'BBB'.
Series 2001-C
-- $60,000,000 collateral interest to 'BBB+' from 'BBB'.
Fitch upgrades MBNA Master Credit Card Master Note Trust as follows:
Series 2001-1
-- $250,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2001-2
-- $100,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2001-3
-- $400,000,000 class C fixed-rate notes to 'BBB+' from 'BBB'.
Series 2001-4
-- $250,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2001-5
-- $150,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2002-1
-- $250,000,000 class C fixed-rate notes to 'BBB+' from 'BBB'.
Series 2002-2
-- $100,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2002-3
-- $200,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2002-4
-- $100,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2002-6
-- $50,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2002-7
-- $50,000,000 class C fixed-rate notes to 'BBB+' from 'BBB'.
Series 2003-1
-- $200,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2003-2
-- $100,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2003-3
-- $175,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2003-4
-- $327,560,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2003-5
-- $100,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2003-6
-- $250,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2003-7
-- $100,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2004-1
-- $200,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2004-2
-- $275,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2005-1
-- $125,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2005-2
-- $150,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2005-3
-- $300,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, 'www.fitchratings.com'. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
The upgrades reflect MBNA's assignment of an ABS seller/servicer rating of 'ABPS/S 1-' by Fitch on July 7, 2005. Taking into account the top tier ABS seller/servicer rating under Fitch's revised assumptions and stresses, available credit enhancement adequately protects investors during early amortization to stressed levels consistent with the new ratings assigned.
The action follows Bank of America's completed acquisition of MBNA on Jan. 1 2006. Going forward, Fitch expects that the accounts and receivables backing the master trusts will continue to be serviced on legacy MBNA platforms and systems at their existing servicing centers. The action also follows Fitch's evaluation of the impact of bankruptcy filings on the receivables pool and Fitch's determination that filings peaked in the December 2005 reporting period, when charge-offs increased by 500 basis points. In the coming months, Fitch expects losses to trend lower and return to historically observed levels in the second half of the year.
Fitch rates ABS seller/servicers on a scale of 1 to 5, with 1 being the highest rating. Within each of these rating levels, Fitch further differentiates ratings by plus (+) and minus (-) as well as the flat rating. For further information about Fitch ABS seller/servicer ratings, see the report 'ABS Seller/Servicer Rating: Credit Where Credit Is Due,' dated Sept. 14, 2004 and 'ABS Seller/Servicer Rating: Credit Card Addendum,' dated Jan. 18, 2006, available on the Fitch Ratings web site at 'www.fitchratings.com'.
Fitch upgrades MBNA Master Credit Card Trust II floating-rate asset-backed securities as follows:
Series 1996-B
-- $42,500,000 collateral interest to 'BBB+' from 'BBB'.
Series 1996-G
-- $37,500,000 collateral interest to 'BBB+' from 'BBB'.
Series 1996-M
-- $37,500,000 collateral interest to 'BBB+' from 'BBB'.
Series 1997-B
-- $75,000,000 collateral interest to 'BBB+' from 'BBB'.
Series 1997-D
-- $34,231,000 collateral interest to 'BBB+' from 'BBB'.
Series 1997-H
-- $44,770,000 collateral interest to 'BBB+' from 'BBB'.
Series 1997-O
-- $37,500,000 collateral interest to 'BBB+' from 'BBB'.
Series 1998-B
-- $48,530,000 collateral interest to 'BBB+' from 'BBB'.
Series 1998-E
-- $66,200,000 collateral interest to 'BBB+' from 'BBB'.
Series 1998-G
-- $56,250,000 collateral interest to 'BBB+' from 'BBB'.
Series 1999-B
-- $56,250,000 collateral interest to 'BBB+' from 'BBB'.
Series 1999-D
-- $37,500,000 collateral interest to 'BBB+' from 'BBB'.
Series 1999-J
-- $75,000,000 collateral interest to 'BBB+' from 'BBB'.
Series 1999-L
-- $56,250,000 collateral interest to 'BBB+' from 'BBB'.
Series 2000-D
-- $63,750,000 collateral interest to 'BBB+' from 'BBB'.
Series 2000-E
-- $45,000,000 collateral interest to 'BBB+' from 'BBB'.
Series 2000-H
-- $52,500,000 collateral interest to 'BBB+' from 'BBB'.
Series 2000-J
-- $50,250,000 collateral interest to 'BBB+' from 'BBB'.
Series 2000-L
-- $37,500,000 collateral interest to 'BBB+' from 'BBB'.
Series 2001-A
-- $93,750,000 collateral interest to 'BBB+' from 'BBB'.
Series 2001-B
-- $56,250,000 collateral interest to 'BBB+' from 'BBB'.
Series 2001-C
-- $60,000,000 collateral interest to 'BBB+' from 'BBB'.
Fitch upgrades MBNA Master Credit Card Master Note Trust as follows:
Series 2001-1
-- $250,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2001-2
-- $100,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2001-3
-- $400,000,000 class C fixed-rate notes to 'BBB+' from 'BBB'.
Series 2001-4
-- $250,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2001-5
-- $150,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2002-1
-- $250,000,000 class C fixed-rate notes to 'BBB+' from 'BBB'.
Series 2002-2
-- $100,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2002-3
-- $200,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2002-4
-- $100,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2002-6
-- $50,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2002-7
-- $50,000,000 class C fixed-rate notes to 'BBB+' from 'BBB'.
Series 2003-1
-- $200,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2003-2
-- $100,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2003-3
-- $175,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2003-4
-- $327,560,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2003-5
-- $100,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2003-6
-- $250,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2003-7
-- $100,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2004-1
-- $200,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2004-2
-- $275,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2005-1
-- $125,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2005-2
-- $150,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Series 2005-3
-- $300,000,000 class C floating-rate notes to 'BBB+' from 'BBB'.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, 'www.fitchratings.com'. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
© 2006 Business Wire
