DBRS Finalizes Ratings to Gloucester Credit Card Trust, Series 2008-1

DBRS has today finalized ratings to the Series 2008-1 Class A (the Class A Notes) and Series 2008-1 Collateral (the Collateral Notes) (collectively, the Notes) issued by Gloucester Credit Card Trust (the Trust) as indicated below:

-- AAA to the Series 2008-1 Class A Notes
-- BBB to the Series 2008-1 Collateral Notes

The ratings are based on the following factors:

(1) The credit enhancement will be available to the Class A Notes provided by subordination of 11.5% and excess spread generated by the receivables (estimated to be approximately 8% at closing). For the Collateral Notes, the credit enhancement available will be composed of a pre-funded Spread Account of 0.50% and excess spread generated by the accounts.

(2) FIA Card Services, N.A. (formerly MBNA America Bank, N.A., rated AA by DBRS as of December 27, 2007) has provided a performance guarantee with respect to the obligations of MBNA Canada Bank as Seller, Servicer and Administrative Agent.

(3) The performance of the Trust’s credit card portfolio has been relatively stable since 2006 – gross yield has averaged between 17.5% and 18.75% (including the fees charged to the accounts); the losses have been in the range of 3.98% to 4.22%; and the monthly payment rate has been between 14.28% and 15.25%.

The existence (or non-existence) of swap arrangements could determine the Trust’s cost of funds to be considered as fixed or floating. Everything else being equal, higher credit enhancement is required to address the potential interest rate risk associated with floating-rate cost of funds. The Notes will have fixed-rate coupons without swap arrangements; this has contributed to the reduction of the required credit enhancement for the Notes compared with other fixed-rate notes with swap arrangements issued by the Trust.

Stress testing indicates that steep declines in yield and payment rates, combined with high losses, would not result in a failure of the Trust in repaying the Notes on a timely basis. The severity of the tests applied is commensurate with the respective ratings of all classes of the Notes.

MBNA Canada Bank is the second largest MasterCard issuer in Canada, with $6.8 billion of receivables outstanding as of March 31, 2008. FIA Card Services, a subsidiary of Bank of America Corporation (rated AA (low) by DBRS as of April 21, 2008), is one of the largest issuers of credit cards in the world and has strong systems capabilities.

Note:
All figures are in Canadian dollars unless otherwise noted.

The full report providing additional analytical detail is available by clicking on the link below or by contacting us at info@dbrs.com.

Media Contact:
Caroline Creighton
Senior Vice President
+1 416 597 7317
ccreighton@dbrs.com