Fitch Affirms GE Capital Credit Card Master Note Trust

NEW YORK--()--Fitch Ratings has affirmed the long-term ratings and Outlooks assigned to GE Capital Credit Card Master Note Trust. A detailed list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The affirmation is based on continued positive trust performance. Gross yield has improved since last review. As of the March 2014 distribution date, the 12-month average gross yield was 27.72%, up from the 12-month average of 26.33% at the March 2013 distribution period.

Monthly payment rate (MPR), a measure of how quickly consumers pay down credit card debt, has remained relatively stable over the past year. Currently, the 12-month average is 15.50%, down slightly from 16.15% at the March 2013 distribution period.

Gross chargeoffs have remained stable since last review. Currently, the 12-month average is 6.68%, down from 6.81% at the March 2013 distribution period. 60+ day delinquencies have remained below 3% over the past three years.

Fitch runs cash flow breakeven analysis by applying stress scenarios to 3-, 6-, and 12-month performance averages to evaluate the breakeven loss multiples at different rating levels. The performance 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 affirmations are based on the performance of the trusts in line with expectations. Stable outlook indicates that Fitch expects the ratings will remain stable for the next one to 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.

RATING SENSITIVITIES

Fitch models three different scenarios when evaluating the rating sensitivity compared to expected performance for credit card asset-backed securities transactions: 1) increased defaults; 2) a reduction in purchase rate, and 3) a combination stress of higher defaults and lower MPR.

Decreasing purchase rate alone has the least impact on rating migration even in the most severe scenario of a 100% decrease in purchase rate. The rating sensitivity to an increase in defaults also will not result in any rating migration. The harshest scenario assumes stresses to defaults and MPR to occur simultaneously. The ratings on senior notes would be downgraded under the moderate stress of a 50% increase in defaults and 25% reduction in MPR; however the severe stress could lead to more drastic downgrades to all classes.

To date, the transactions have exhibited strong performance with all performance metrics within Fitch's initial expectations. For further discussion of our sensitivity analysis, please see the new issue report related to one of the transactions listed below.

Fitch has affirmed the following classes as indicated:

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

--Class A at 'AAAsf'; Outlook Stable;

--Class B at 'A+sf'; Outlook Stable;

--Class C at 'BBB+sf'; Outlook Stable.

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

--Class A at 'AAAsf'; Outlook Stable.

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

--Class A at 'AAAsf'; Outlook Stable.

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

--Class A at 'AAAsf'; Outlook Stable;

--Class B at 'Asf'; Outlook Stable;

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

--Class A at 'AAAsf'; Outlook Stable;

--Class B at 'Asf', Outlook Stable;

GE Capital Credit Card Master Note Trust, Series 2011-2:

--Class A at 'AAAsf'; Outlook Stable;

--Class B at 'A+sf'; Outlook Stable;

--Class C at 'BBB+sf'; Outlook Stable.

GE Capital Credit Card Master Note Trust, Series 2012-1:

--Class A at 'AAAsf'; Outlook Stable;

--Class B at 'A+sf'; Outlook Stable;

--Class C at 'BBB+sf'; Outlook Stable.

GE Capital Credit Card Master Note Trust, Series 2012-2:

--Class A at 'AAAsf'; Outlook Stable;

--Class B at 'A+sf'; Outlook Stable;

--Class C at 'BBB+sf'; Outlook Stable.

GE Capital Credit Card Master Note Trust, Series 2012-3:

--Class A at 'AAAsf'; Outlook Stable;

--Class B at 'A+sf'; Outlook Stable;

--Class C at 'BBB+sf'; Outlook Stable.

GE Capital Credit Card Master Note Trust, Series 2012-4:

--Class A at 'AAAsf'; Outlook Stable;

--Class B at 'A+sf'; Outlook Stable;

--Class C at 'BBB+sf'; Outlook Stable.

GE Capital Credit Card Master Note Trust, Series 2012-5:

--Class A at 'AAAsf'; Outlook Stable;

--Class B at 'A+sf'; Outlook Stable;

--Class C at 'BBB+sf'; Outlook Stable.

GE Capital Credit Card Master Note Trust, Series 2012-6:

--Class A at 'AAAsf'; Outlook Stable;

--Class B at 'A+sf'; Outlook Stable;

--Class C at 'BBB+sf'; Outlook Stable.

GE Capital Credit Card Master Note Trust, Series 2012-7:

--Class A at 'AAAsf'; Outlook Stable;

--Class B at 'A+sf'; Outlook Stable;

--Class C at 'BBB+sf'; Outlook Stable.

GE Capital Credit Card Master Note Trust, Series 2013-1:

--Class A at 'AAAsf'; Outlook Stable;

--Class B at 'A+sf'; Outlook Stable;

--Class C at 'BBB+sf'; Outlook Stable.

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

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (May 24, 2013);

--'Global Credit Card ABS Rating Criteria' (June 7, 2013).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

Global Credit Card ABS Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=709356

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=825511

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. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts

Fitch Ratings
Primary Analyst
Jared Kirsch
Analyst
+1-212-908-0646
or
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Herman Poon
Director
+1-212-908-0847
or
Committee Chairperson
Steven Stubbs
Senior Director
+1-212-908-0676
or
Media Relations:
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Jared Kirsch
Analyst
+1-212-908-0646
or
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Herman Poon
Director
+1-212-908-0847
or
Committee Chairperson
Steven Stubbs
Senior Director
+1-212-908-0676
or
Media Relations:
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com