DBRS Confirms Ratings on Eagle Credit Card Trust

DBRS Limited (DBRS) confirmed its ratings on all outstanding Notes (the Notes) issued by Eagle Credit Card Trust (the Trust) as follows:

-- Credit Card Receivables-Backed Class A Notes, Series 2013-1 at AAA (sf)
-- Credit Card Receivables-Backed Class B Notes, Series 2013-1 at A (sf)
-- Credit Card Receivables-Backed Class C Notes, Series 2013-1 at BBB (sf)

-- Credit Card Receivables-Backed Class A Notes, Series 2015-1 at AAA (sf)
-- Credit Card Receivables-Backed Class B Notes, Series 2015-1 at A (sf)
-- Credit Card Receivables-Backed Class C Notes, Series 2015-1 at BBB (sf)

-- Credit Card Receivables-Backed Class A Notes, Series 2017-1 at AAA (sf)
-- Credit Card Receivables-Backed Class B Notes, Series 2017-1 at A (sf)
-- Credit Card Receivables-Backed Class C Notes, Series 2017-1 at BBB (sf)

-- Credit Card Receivables-Backed Class A Notes, Series 2018-1 at AAA (sf)
-- Credit Card Receivables-Backed Class B Notes, Series 2018-1 at A (sf)
-- Credit Card Receivables-Backed Class C Notes, Series 2018-1 at BBB (sf)

The confirmation is part of DBRS's continued efforts to provide timely credit rating opinions and increased transparency to market participants and is based on the following factors:

(1) For the AAA (sf)-rated Class A Notes, credit enhancement (CE) is provided by subordination of 7.0%; excess spread, which has been in the range of 16.1% to 17.9% over the last 12 months; and the series-specific reserve account, which could build up to 5.0% of the Invested Amount if the three-month average excess spread falls below 2.0%.

(2) For the A (sf)-rated Class B Notes, CE is provided by subordination of 3.5%, excess spread and the series-specific reserve account.

(3) For the BBB (sf)-rated Class C Notes, CE is provided by excess spread and the series-specific reserve account.

(4) The Trust's inclusion of a letter of credit (LOC), which equals to 9% of the outstanding balance of the Series 2013-1 notes. While the LOC is a credit positive, DBRS considers that the benefit is constrained by the condition that the LOC is available only when another rating agency continues to rate Series 2013-1, which may cease at any time.

(5) Payment rates and gross yield are among the highest in Canada. Payment rates have averaged above 50.0% over the past three years and the three-month average gross yield was 25.5% as of June 30, 2018. While the three-month average loss rate increased to a peak of 7.0% in July 2009, it has since declined to 3.3% as of June 30, 2018, and delinquencies have also stabilized. The annualized monthly loss rate remains stable averaging 3.0% over the past year.

(6) The custodial pool is a well-diversified portfolio.

The performance and characteristics of the custodial pool and the Notes are available and updated each month in the Monthly Canadian ABS Report. DBRS conducts a monthly stress testing of each rated class of the Trust and the result indicates that simultaneous declines in yield and payment rates and increases in losses would not result in a failure of the Trust to repay the Notes on a timely basis. The severity of the tests applied is commensurate with the respective ratings of the Notes.

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

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info@dbrs.com.

The principal methodologies are Rating Canadian Credit Card and Personal Line of Credit Securitizations (November 2017), Legal Criteria for Canadian Structured Finance (July 2018), Master Canadian Structured Finance Surveillance (May 2018) and Derivatives Criteria for Canadian Structured Finance (July 2018), which can be found on dbrs.com under Methodologies.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

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