DBRS Upgrades Master Credit Card Trust 2008 Class B and C Notes and Assigns BBB (sf) Rating to 2008 Class D Notes

DBRS has today upgraded the following classes of subordinated notes issued by Master Credit Card Trust (the Trust):

– Credit Card Receivables-Backed Class B Notes, Series 2008-1 to AA (sf) from “A” (sf)
– Credit Card Receivables-Backed Class C Notes, Series 2008-1 to “A” (sf) from BBB (sf)
– Credit Card Receivables-Backed Class B Notes, Series 2008-2 to AA (sf) from “A” (sf)
– Credit Card Receivables-Backed Class C Notes, Series 2008-2 to “A” (sf) from BBB (sf)
– Credit Card Receivables-Backed Class B Floating Rate Notes, Series 2008-3 to AA (sf) from “A” (sf)
– Credit Card Receivables-Backed Class C Floating Rate Notes, Series 2008-3 to “A” (sf) from BBB (sf)
– Credit Card Receivables-Backed Class B Floating Rate Notes, Series 2008-4 to AA (sf) from “A” (sf)
– Credit Card Receivables-Backed Class C Floating Rate Notes, Series 2008-4 to “A” (sf) from BBB (sf)

In addition, DBRS has assigned a rating of BBB (sf) to the following newly issued notes (collectively, the 2008 Class D Notes):

– Credit Card Receivables-Backed Class D Notes, Series 2008-1
– Credit Card Receivables-Backed Class D Notes, Series 2008-2
– Credit Card Receivables-Backed Class D Floating Rate Notes, Series 2008-3
– Credit Card Receivables-Backed Class D Floating Rate Notes, Series 2008-4

The addition of the most subordinated Class D Notes increased the subordination for the notes issued in 2008 (the 2008 Notes) by approximately 1% as follows:
– To 5.5% and 8.5% for fixed-rate and floating-rate Class A Notes, respectively. The new subordination levels for Class A Notes are now the same as the 2011 issuances of the Trust.
– To 3.27% and 4.79% for fixed-rate and floating-rate Class B Notes, respectively.
– To 1.05% and 1.08% for fixed-rate and floating-rate Class C Notes, respectively.

DBRS’s analysis shows that the upgraded ratings for the 2008 Class B and Class C Notes and the BBB (sf) rating for the 2008 Class D Notes are warranted and commensurate with DBRS stress scenarios after consideration of the stabilizing loss rates of the Trust, the benefit of 1% more enhancement for credit support and excess spread, which is currently greater than 12% for the 2008 Notes.

DBRS notes that no class D notes were issued for Series 2006-2 or Series 2006-3 (collectively, the 2006 Notes), both of which have expected maturity dates in November 2011. There is no rating action on the 2006 Notes at this time.

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

The applicable methodologies are DBRS Criteria for Canadian Credit Card Securitization and Legal Criteria for Canadian Structured Finance, which are available on our website under Methodologies.

MEDIA CONTACT
Caroline Creighton
Senior Vice President – Communications
+1 416 597 7317
ccreighton@dbrs.com