Fitch Rates Discover Card Execution Note Trust Class A (2008-4) 'AAA'

NEW YORK--(BUSINESS WIRE)--Fitch Ratings assigns a rating of 'AAA' to $750 million class A (2008-4) DiscoverSeries notes issued by the Discover Card Execution Note Trust (DCENT). The class A (2008-4) notes accrue interest at a fixed rate of 5.65% (payable monthly), and have expected principal and legal maturity dates of June 17, 2013 and Dec. 15, 2015, respectively.

The ratings are based on the strength of the underlying receivables pool, the available credit enhancement, the servicing expertise of Discover Bank, and the transaction's legal and cash flow structures. The class A (2008-4) notes will receive payments of principal and interest pro rata with other class A notes outstanding based on the stated principal amount of each outstanding series of notes in that tranche. This will be the sixth issuance of class A notes in DCENT in 2008.

In July 2007, Discover Bank formed a new issuance vehicle, the DCENT issuance trust, from which Discover Bank issues credit card asset-backed securities. The notes issued by DCENT issuance trust are secured by the Collateral Certificate, series 2007-CC issued by the Discover Card Master Trust I, the DiscoverSeries collections account and other accounts of the note issuance trust, funds on deposit in those accounts, and permitted investments of and investment income on those funds. The collateral certificate represents an undivided interest in the assets of the Discover Card Master Trust I.

The DCENT DiscoverSeries is known as a 'multiple issuance series' that allows for the sale of a single note series or a multiple note series. A multiple issuance series consists of class A, B and C notes, with tranches that may be offered independently and have differing terms, issuance dates and maturities. All of the tranches of subordinated notes in a multiple issuance series support the senior classes of that series. Although notes of a multiple issuance series can be offered on any date, senior notes may only be offered to the extent the required subordinated amount is outstanding at that time, without regard to the expected maturity of the subordinated notes.

For a multiple issuance series, class A, class B, or class C notes can be offered only to the extent that the sufficient credit enhancement is outstanding. The required subordinated amount for the issuance of class A notes, expressed as a percentage of the adjusted outstanding dollar principal amount of class A notes, is approximately 6.285714% of class B notes and 8.000000% of class C notes, respectively. This subordination level provide equivalent credit enhancement to that of a single issuance series.

For a copy of the Discover Card Execution Note Trust report or for historical trust performance on Discover Card Master Trust I, please refer to Fitch Ratings Asset-Backed Surveillance available at www.fitchratings.com.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.