DBRS Publishes Updated Methodologies for U.S. Credit Card ABS Transactions

DBRS, Inc. (DBRS) has today published an updated methodology regarding the rating approach for U.S. credit card asset-backed (ABS) transactions. The methodology outlines the key factors analyzed, which include:

-- Quality of originations and underwriting practices;
-- Quality of servicing capabilities;
-- Collateral quality analysis;
-- Capital structure, target ratings and credit enhancement;
-- Cash flow scenario analysis; and
-- Legal structure and opinions.

DBRS has also published its Unified Interest Rate Model methodology for U.S. credit card ABS transactions. The purpose of the DBRS Unified Interest Rate Model is to provide a consistent platform for the application of interest rate stresses applied across all U.S. credit card ABS ratings. As such, the platform generates upward and downward stresses for such diverse interest rates as US LIBOR, CP, PRIME, CMT and MTA.

These methodologies, effective as of the date of this press release, supersede any previous methodologies. Neither methodology includes any material changes, and all outstanding DBRS-rated U.S. credit card transactions meet the criteria set forth in both rating methodologies. Accordingly, no rating actions will be taken on any outstanding transactions.

DBRS criteria and methodologies are publicly available on its website www.dbrs.com under Methodologies.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.