ABS: Credit Card ABS Global Rating Methodology

Introduction

This report describes Kroll Bond Rating Agency, LLC and its rating affiliates’ (collectively, “KBRA”) methodology for rating credit card asset-backed securities (“credit card ABS”). KBRA’s rating of a credit card ABS transaction incorporates an analysis of the quality and expected performance of the underlying collateral; the originator’s and servicer’s business model and operational capabilities and the transaction terms, including capital structure, credit enhancement and legal structure. KBRA assigns ratings to credit card ABS using its short-term and long-term rating scales depending on the securities being rated. For more information about KBRA’s rating scale, please see KBRA’s Rating Scale and Definitions.

When rating credit card ABS, KBRA analyzes the underlying collateral pool and the originator’s historical portfolio performance data. KBRA typically performs an operational assessment of…