Fitch Rates Capital One's Credit Card Seller/Servicer 'Proficient Plus'

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has assigned Capital One Bank (USA), National Association (Capital One) a Credit Card Seller/Servicer Rating of 'Proficient Plus'. The rating is based on the company's experienced management team, strong brand awareness, quality controls and vendor management, which is necessitated by its high level of outsourcing.

Capital One has proven its ability to service its book of managed credit card receivables. Fitch believes the company has an added layer of operational risk due to its extensive use of outsourcing. The use of outsource partners, while successful to date, must be managed to insure that operational partners are performing appropriately and that significant deterioration does not occur during times of economic distress. In addition, Capital One, which uses many partners, has a high concentration in its collections function with one company. As a result Capital One is working to bring the concentration within the company's own guidelines. Fitch will continue to monitor Capital One's outsourcing efforts in relation to portfolio deterioration.

Chairman and Chief Executive Officer Richard Fairbank founded Capital One Financial Corporation, the parent company of Capital One in 1988 and the company operated as a division of Signet Bank until its initial public offering in 1994. Capital One Financial Corporation acquired Hibernia Bank and North Fork Bank, which moved the company from a monoline credit card company in the 1990's to a diversified consumer lender in the 2000's and full banking company today.

Capital One Financial Corporation is the 11th largest depository institution in the United States and the 5th largest general purpose credit card issuer by outstanding managing about $70 billion and over 41 million accounts at Dec. 31, 2007. The company is headquartered in Mclean, VA and has its primary operations center in Richmond, VA.

Fitch expects to publish a full report detailing the qualities of Capital One that support the assigned ratings.

Fitch rates ABS seller/servicers as Proficient Plus, Proficient or Proficiency Unproven. For further information about Fitch Student Loan ABS seller/servicer ratings, refer to the report titled 'Rating U.S. Student Loan Seller/Servicers,' dated Aug. 1, 2007, available on the Fitch Ratings web site at www.fitchratings.com.

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