info

Yes No
Moodys.com
Terms of Use
REGULATORY
.
SUSTAINABILITY
.
DIVERSITY, EQUITY & INCLUSION
CAREERS
.
ABOUT US
.
CONTACT US
HOME
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Can't read?
Try a new set
Send Cancel
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
OK
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
OK
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

 

By clicking “I AGREE”, you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s information that becomes accessible to you (the “Information”). References herein to “Moody’s” include Moody’s Corporation. and each of its subsidiaries and affiliates..

 

Terms of One-Time Website Use

 

1.             Unless you have entered into an express written contract with www.moodys.com to the contrary and/or agreed to the Terms of Use at www.moodys.com or ratings.moodys.com, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.                   

 

2.             CREDIT RATINGS AND MOODY’S MATERIALS FOUND ON WWW.MOODYS.COM OR SITES OTHER THAN RATINGS.MOODYS.COM MAY NOT BE DISPLAYED IN REAL TIME. FOR REAL-TIME DISPLAYS OF CREDIT RATINGS AND OTHER INFORMATION REQUIRED TO BE DISCLOSED BY MIS PURSUANT TO APPLICABLE LAW OR REGULATION, PLEASE USE RATINGS.MOODYS.COM.           

 

3.             You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities. Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision. No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.

 

4.             To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.     

 

5.             You agree to read and be bound by the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.​​​

 

6.             You agree that any disputes relating to this agreement or your use of the Information, whether in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

​
I AGREE
Rating Action:

Moody's Affirms Aaa Ratings of Class A Certificates Issued by Discover Card Master Trust I, Places Ratings of 22 Class B Certificates Under Review for Possible Downgrade

19 Dec 2006
Moody's Affirms Aaa Ratings of Class A Certificates Issued by Discover Card Master Trust I, Places Ratings of 22 Class B Certificates Under Review for Possible Downgrade

Approximately $23 Billion of Asset-Backed Securities Affected.

New York, December 19, 2006 -- Moody's Investors Service has placed the ratings of twenty-two classes of subordinate, Class B certificates issued from Discover Card Master Trust I (the Trust) under review for possible downgrade. The Aaa ratings on the related twenty-six classes of senior, Class A certificates were affirmed.

This ratings action follows Morgan Stanley's December 19, 2006 announcement that its board of directors had authorized management to pursue a spin-off of its subsidiary, Discover Financial Services (Discover). As a result, Moody's affirmed the Aa3 senior unsecured rating of Discover's parent company, Morgan Stanley. At the same time, the A3 bank deposit and debt ratings, and the short-term Prime-2 rating of Discover's wholly owned bank, Discover Bank, were placed under review for possible downgrade. If the spin-off occurs as planned, then Moody's expects to assign a Baa2 long-term deposit rating and Baa3 senior unsecured debt rating to Discover Bank, with a stable outlook.

The spin-off, which is subject to regulatory approval and other customary conditions, is expected to occur in the third quarter of 2007.

The completely rating action is as follows:

THE FOLLOWING RATINGS WERE AFFIRMED

Issuer: Discover Card Master Trust I

$1,000,000,000 Floating Rate Class A Certificates, Series 1996-4, rated Aaa

$671,980,000 Floating Rate Class A Certificates, Series 1998-5, rated Aaa

$650,000,000 Floating Rate Class A Certificates, Series 2000-4, rated Aaa

$850,000,000 Floating Rate Class A Certificates, Series 2000-7, rated Aaa

$1,200,000,000 Floating Rate Class A Certificates, Series 2001-1, rated Aaa

$750,000,000 Floating Rate Class A Certificates, Series 2002-2, rated Aaa

$900,000,000 Floating Rate Class A Certificates, Series 2002-3, rated Aaa

$500,000,000 Floating Rate Class A Certificates, Subseries 3, Series 2003-1, rated Aaa

$1,000,000,000 Floating Rate Class A Certificates, Series 2003-2, rated Aaa

$900,000,000 Floating Rate Class A Certificates, Series 2003-3, rated Aaa

$1,100,000,000 Floating Rate Class A Certificates, Subseries 1, Series 2003-4, rated Aaa

$750,000,000 Floating Rate Class A Certificates, Subseries 2, Series 2003-4, rated Aaa

$1,250,000,000 Floating Rate Class A Certificates, Series 2004-1, rated Aaa

$1,250,000,000 Floating Rate Class A Certificates, Subseries 1, Series 2004-2, rated Aaa

$500,000,000 Floating Rate Class A Certificates, Subseries 2, Series 2004-2, rated Aaa

$1,500,000,000 Floating Rate Class A Certificates, Series 2005-1, rated Aaa

$800,000,000 Floating Rate Class A Certificates, Series 2005-2, rated Aaa

$1,500,000,000 Floating Rate Class A Certificates, Series 2005-3, rated Aaa

$700,000,000 Floating Rate Class A Certificates, Subseries 1, Series 2005-4, rated Aaa

$800,000,000 Floating Rate Class A Certificates, Subseries 2, Series 2005-4, rated Aaa

$750,000,000 Floating Rate Class A Certificates, Subseries 1, Series 2006-1, rated Aaa

$750,000,000 Floating Rate Class A Certificates, Subseries 2, Series 2006-1, rated Aaa

$600,000,000 Floating Rate Class A Certificates, Subseries 1, Series 2006-2, rated Aaa

$600,000,000 Floating Rate Class A Certificates, Subseries 2, Series 2006-2, rated Aaa

$320,000,000 Floating Rate Class A Certificates, Subseries 3, Series 2006-2, rated Aaa

$500,000,000 Floating Rate Class A Certificates, Series 2006-3, rated Aaa

UNDER REVIEW FOR POSSIBLE DOWNGRADE

Issuer: Discover Card Master Trust I

$52,632,000 Floating Rate Class B Certificates, Series 1996-4, rated A2

$35,368,000 Floating Rate Class B Certificates, Series 1998-5, rated A2

$63,158,000 Floating Rate Class B Certificates, Series 2001-1, rated A2

$26,316,000 Floating Rate Class B Certificates, Subseries 3, Series 2003-1, rated A2

$52,632,000 3.85% Class B Certificates, Series 2003-2, rated A2

$47,369,000 Floating Rate Class B Certificates, Series 2003-3, rated A2

$57,895,000 Floating Rate Class B Certificates, Subseries 1, Series 2003-4, rated A2

$39,474,000 Floating Rate Class B Certificates, Subseries 2, Series 2003-4, rated A2

$65,790,000 Floating Rate Class B Certificates, Series 2004-1, rated A2

$65,790,000 Floating Rate Class B Certificates, Subseries 1, Series 2004-2, rated A2

$26,316,000 Floating Rate Class B Certificates, Subseries 2, Series 2004-2, rated A2

$78,948,000 Floating Rate Class B Certificates, Series 2005-1, rated A2

$42,106,000 Floating Rate Class B Certificates, Series 2005-2, rated A2

$78,948,000 Floating Rate Class B Certificates, Series 2005-3, rated A2

$36,843,000 Floating Rate Class B Certificates, Subseries 1, Series 2005-4, rated A2

$42,106,000 Floating Rate Class B Certificates, Subseries 2, Series 2005-4, rated A2

$39,474,000 Floating Rate Class B Certificates, Subseries 1, Series 2006-1, rated A2

$39,474,000 Floating Rate Class B Certificates, Subseries 2, Series 2006-1, rated A2

$31,579,000 Floating Rate Class B Certificates, Subseries 1, Series 2006-2, rated A2

$31,579,000 Floating Rate Class B Certificates, Subseries 2, Series 2006-2, rated A2

$16,843,000 Floating Rate Class B Certificates, Subseries 3, Series 2006-2, rated A2

$26,316,000 Floating Rate Class B Certificates, Series 2006-3, rated A2

The ratings of the following classes of certificates are not affected by this rating action because of their scheduled maturity within the next six months which is expected to occur prior to the spin-off.

$34,211,000 Floating Rate Class B Certificates, Series 2000-4, rated A2

$44,737,000 Floating Rate Class B Certificates, Series 2000-7, rated A2

$39,474,000 5.45% Class B Certificates, Series 2002-2, rated A2

$47,369,000 Floating Rate Class B Certificates, Series 2002-3, rated A2

RATIONALE

In Moody's view, if the spin-off of Discover occurs, the likely two-notch downgrade of the Discover Bank's deposit rating to Baa2 increases the probability of a full or partial shutdown of purchases on the Discover network, which increases the risk to bondholders. This increased risk is not sufficient to result in a review of the current Aaa ratings on the Class A Certificates, but the current ratings may be more volatile than newly issued credit card securities. If the Discover spin-off occurs, the subordinate Class B securities may be downgraded to A3 from A2 unless compensating actions are taken by Discover. Furthermore, if Discover Bank is spun off, the credit enhancement for newly issued senior and subordinate bonds may increase in order to achieve respective Aaa and A2 ratings.

Moody's ratings on the Discover Card Master Trust I Certificates are closely related to those of Discover Bank due to the risks associated with the Discover Card proprietary payments network and the reliance on a unique structural feature of the Trust that was a key factor in setting credit enhancement levels. The Discover Card network allows merchants to accept Discover Card transactions and, because it is an independent network, its viability is inextricably linked to the credit strength of Discover Bank. Likewise, the efficacy of the fixed finance charge allocation feature in the Trust is dependent upon the viability of the underlying card program.

Moody's analysis assumed that Discover Bank will continue to maintain the seller's interest in the Trust at well above that contractually required minimum of 7%. In fact, since 2001, the Trust's seller's interest has ranged from approximately 10% to 25%. Though not typically considered incremental credit enhancement, in certain scenarios the additional seller's interest provides some benefit to the overall enhancement levels. For example, a larger seller's interest is of incremental value if it is assumed that card utility has been closed and the securitized portfolio is declining.

Moody's review of the certificates will also incorporate, among other factors, aspects of its updated approach to rating credit card ABS which were introduced on December 4, 2006, in a report entitled, "Moody's Approach to Rating Credit Card Receivables-Backed Securities."

New York
William Black
Senior Vice President
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
Jinhua (Rachel) Sun
Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

No Related Data.
© 2022 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE APPLICABLE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS (“ASSESSMENTS”), AND OTHER OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody’s Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $5,000,000. MCO and Moody’s Investors Service also maintain policies and procedures to address the independence of Moody’s Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody’s Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY100,000 to approximately JPY550,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​
Moodys.com