Fitch Affirms GE Capital CC Master Note Trust

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed the long-term ratings, Loss Severity (LS) ratings and Rating Outlooks assigned to GE Capital Credit Card Master Note Trust as follows:

GE Capital Credit Card Master Note Trust Series 2007-2:

--Class A at 'AAA/LS1'; Outlook Stable;

--Class B at 'AA-/LS3'; Outlook Stable;

--Class C at 'A/LS4'; Outlook Stable.

GE Capital Credit Card Master Note Trust Series 2007-4:

--Class A at 'AAA/LS1'; Outlook Stable;

--Class B at 'AA-/LS3'; Outlook Stable;

--Class C at 'A/LS4'; Outlook Stable.

GE Capital Credit Card Master Note Trust Series 2009-1:

--Class A at 'AAA/LS1'; Outlook Stable;

--Class B at 'A+/LS3'; Outlook Stable;

--Class C at 'BBB+/LS3'; Outlook Stable.

GE Capital Credit Card Master Note Trust Series 2009-2:

--Class A at 'AAA/LS1'; Outlook Stable;

--Class B at 'A+/LS3'; Outlook Stable;

--Class C at 'BBB+/LS3'; Outlook Stable.

GE Capital Credit Card Master Note Trust Series 2009-3:

--Class A at 'AAA/LS1'; Outlook Stable;

--Class B at 'A+/LS3'; Outlook Stable;

--Class C at 'BBB+/LS3'; Outlook Stable.

GE Capital Credit Card Master Note Trust Series 2009-4:

--Class A at 'AAA/LS1'; Outlook Stable;

--Class B at 'A+/LS3'; Outlook Stable;

--Class C at 'BBB+/LS3'; Outlook Stable.

GE Capital Credit Card Master Note Trust Series 2010-1:

--Class A at 'AAA/LS1'; Outlook Stable.

GE Capital Credit Card Master Note Trust Series 2010-2:

--Class A at 'AAA/LS1'; Outlook Stable.

GE Capital Credit Card Master Note Trust Series 2010-3:

--Class A at 'AAA/LS1'; Outlook Stable.

GE Capital Credit Card Master Note Trust Series 2010-VFN1:

--Class A at 'AAA/LS1'; Outlook Stable;

--Class B at 'A/LS3'; Outlook Stable;

GE Capital Credit Card Master Note Trust Series 2010-VFN2:

--Class A at 'AAA/LS1'; Outlook Stable;

--Class B at 'A/LS3'; Outlook Stable;

GE Capital Credit Card Master Note Trust Series 2011-1:

--Class A at 'AAA/LS1'; Outlook Stable;

--Class B at 'A+/LS3'; Outlook Stable.

The affirmation is based on continued positive trust performance. Monthly payment rate (MPR), a measure of how quickly consumers are paying off their credit card debts, has improved over the past year. Currently the 12-month average is 15.95%, up from 14.90% at the March 2010 distribution period.

Gross charge-offs have increased since the last review. Currently the 12-month average is 9.79%, up from 8.81% at the March 2010 distribution period. However, the current 3-month average chargeoff rate of 9.36% is well below the Fitch retail 3-month average of 10.89%. Fitch expects that chargeoffs will continue to decline toward pre-recessionary levels in the coming months.

Fitch runs a cash flow breakeven analysis by applying stress scenarios to 3-, 6-, and 12-month performance metric averages to test whether the trust can withstand stresses and losses commensurate with the current rating level given the available credit enhancement. The variables that Fitch stresses are the gross yield, monthly payment rate, gross charge-off, and purchase rates. For further information, please review the U.S. Credit Card ABS Issuance updates published on a monthly basis.

The trust's performance is in line with expectations. The stable outlook indicates that as a result of the continued positive performance trends for this trust, Fitch expects the ratings will remain stable over the next two years.

Fitch's analysis included a comparison of observed performance trends over the past few months to Fitch's base case expectations for each outstanding rating category. As part of its ongoing surveillance efforts, Fitch will continue to monitor the performance of these trusts.

Additional information is available at 'www.fitchratings.com'

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (Aug. 13, 2010);

--'Global Credit Card ABS Rating Criteria,' (June 29, 2010).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547326

Global Credit Card ABS Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=529926

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE '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.