NEW YORK--(BUSINESS WIRE)--Fitch Ratings has issued a presale for Chase Issuance Trust, class A (2015-1) and class A (2015-2), to be rated as follows:
--$350,000,000 class A (2015-1) 'AAAsf'; Outlook Stable;
--$1,400,000,000 class A (2015-2) 'AAAsf'; Outlook Stable.
KEY RATING DRIVERS
Fitch's ratings are based on the underlying receivables pool, available credit enhancement, Chase Bank's underwriting and servicing capabilities, and the transaction's legal and cash flow structures, which employ early redemption triggers.
The transaction structure is the same as class A (2014-8), with credit enhancement totaling 14% for class A.
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 monthly payment rate (MPR); and 3) a combination stress of higher defaults and lower MPR.
Increasing defaults alone has no impact on rating migration even in the most severe scenario of a 75% increase in defaults. The rating sensitivity to a reduction in purchase rate is more pronounced with a moderate stress, of a 75% reduction, leading to possible downgrades across all classes. The harshest scenario assumes that an increase in defaults and reduction in monthly payment rate occur simultaneously. Similarly, the ratings would only 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 Fitch's sensitivity analysis, please see the related presale report. For a discussion of the representations, warranties, and enforcement mechanisms available to investors in this transaction please see the related presale appendix.
The presale report is available to all investors on Fitch's website at 'www.fitchratings.com'. For more information about Fitch's comprehensive subscription service FitchResearch, which includes all presale reports, surveillance, and credit reports on more than 20 asset classes, contact product sales at +1-212-908-0800 or at 'email@example.com'.
Additional information is available at 'www.fitchratings.com'.
Applicable and Related Research:
--'Global Credit Card ABS Rating Criteria' (May 2014);
--'Global Structured Finance Rating Criteria' (August 2014).
Applicable Criteria and Related Research: Chase Issuance Trust, Class A (2015-1) and Class A (2015-2) (US ABS)
Global Credit Card ABS Rating Criteria
Global Structured Finance Rating Criteria