DBRS Rates World Financial Network Credit Card Master Note Trust II Series 2010-1

DBRS has today published a pre-sale report on World Financial Network Credit Card Master Note Trust II 2010-1 (WFNCCMNT II 2010-1). The WFNCCMNT II 2010-1 transaction represents the first publicly issued securitization of World Financial Network National Bank’s credit card receivables through this master trust in 2010.

The WFNCCMNT II 2010-1 transaction represents the sixth Series issued from the master trust and will be the second outstanding series. Initial Class A credit support of 35.50% will include Class M Notes (9.75%), Class B Notes (6.50%), Class C Notes (11.50%), Class D Notes (7.75%) and an unfunded dedicated spread account.

The master trust has been in existence since 1992 and was renamed in October 2009 from Charming Shoppes Master Trust to WFNCCMNT II. In August 2009, Charming Shoppes Inc., the parent company of Spirit Bank, agreed to sell its private label credit card program to Alliance Data Systems (ADS) to reduce debt. The sale closed in November 2009 and the systems conversion was completed in February 2009. Prior to the end of 2009, all of the receivables were originated by Spirit of America National Bank (Spirit Bank), a monoline bank.

ADS purchased the existing accounts and the rights to new accounts and certain other assets of the retailer’s brands. Through their WFN subsidiary they are currently funding receivables when new draws are made. Charming Shoppes Inc. is a specialty apparel retailer that has been in business since 1940. Charming Shoppes is also the parent company of three major brands: Lane Bryant, Fashion Bug and Catherines Plus Sizes, amongst others.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodology is Rating U.S. Credit Card Securitizations, which can be found on our website under Methodologies.

This is a Structured Finance rating.

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