KBRA Assigns Ratings to Mercury Financial Credit Card Master Trust Series 2024-1
31 Jan 2024 | New York
KBRA assigns ratings to four classes of notes issued by Mercury Financial Credit Card Master Trust, Series 2024-1 (“MFCCMT 2024-1”), a credit card asset-backed securitization issued out of the Mercury Financial Credit Card Master Trust (“Master Trust”).
Mercury Financial LLC (the “Company”) is a consumer finance company founded in 2013 that provides services to support the Mercury Financial Program, its general-purpose credit card program under the Mastercard and Visa brands. These services include marketing, underwriting, and servicing credit card accounts.
The notes of MFCCMT 2024-1 are collateralized and repaid by a portfolio of revolving general-purpose credit card accounts in the Master Trust (“Trust Portfolio”) for which the Series 2024-1 Notes are allocated a percentage interest in the Trust Portfolio. The accounts were originated through the Mercury Financial Program and the Legacy Accounts acquired from a Delaware banking corporation. MFCCMT 2024-1 includes a 24-month revolving period where no principal payments will be made on the notes unless an Early Amortization Event occurs. Receivables in the Trust Portfolio are generated by accounts owned by First Bank & Trust. Wilmington Trust, National Association will be the backup servicer.
MFCCMT 2024-1 represents the Company’s ninth securitization issued from the Master Trust. The Company has also previously issued four private securitizations issued from discrete trusts that have subsequently been repaid.
KBRA applied its Global Credit Card ABS Rating Methodology as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the transaction’s underlying collateral pool and the proposed capital structure. KBRA considered its operational review of Mercury Financial as well as periodic update calls with the Company. Operative agreements and legal opinions for the transaction were reviewed prior to closing.
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