Moody's affirms ratings on American Express' credit card and charge card securities
Up to $39.4 billion of asset-backed securities affected
New York, October 23, 2008 -- Moody's Investors Service has affirmed the ratings on 122 classes of asset-backed
securities issued by American Express' credit card and charge card
trusts.
This affirmation addresses Moody's October 20, 2008 downgrade of
American Express Company ("Amex", senior to A2 from
A1) and its subsidiaries, including its banks American Express Centurion
Bank (senior to A1 from Aa3) and American Express Bank FSB (senior to
A1 from Aa3). American Express Travel Related Services, Inc.
("TRS") was also downgraded (senior to A1 from Aa3).
The rating outlook for Amex and it subsidiaries is negative. These
rating actions conclude the rating review of Amex that was initiated on
August 7, 2008.
TRS is the seller/servicer for the related credit card and charge card
trusts. The viability of revolving securitization programs is highly
correlated to the credit strength of the seller/servicer. This
evaluation of the seller/servicer's credit strength is therefore an important
consideration in Moody's credit opinion of the program's outstanding asset-backed
securities. It is Moody's opinion that higher-rated seller/servicers
are more likely to maintain the ongoing servicing and origination requirements
of such a program.
The collateral performance of the securitized Amex credit card and charge
card portfolios generally remains within the bounds of Moody's expectations
and is not a principal factor in the ratings affirmation of the asset-backed
securities. Nevertheless, for both Amex and the broader credit
card market, Moody's expects collateral performance will likely
deteriorate throughout 2008 and 2009 as delinquency and charge-off
rates continue to rise. In addition, Moody's has a negative
outlook on the credit card sector.
Downward rating pressure on Amex's credit and charge card securities
could ensue as the result of either a further weakening of TRS's
credit strength, or collateral deterioration in the trusts in excess
of Moody's expectations.
The ratings on the following securities were affirmed:
Issuer: American Express Credit Account Master Trust
$495,000,000 Class A Floating Rate Asset Backed Certificates,
Series 2002-5, rated Aaa
$48,000,000 Class B Floating Rate Asset Backed Certificates,
Series 2002-5, rated Aa3
$668,000,000 Class A Floating Rate Asset Backed Certificates,
Series 2004-1, rated Aaa
$60,000,000 Class B Floating Rate Asset Backed Certificates,
Series 2004-1, rated Aa3
$334,000,000 Class A Floating Rate Asset Backed Certificates,
Series 2004-2, rated Aaa
$30,000,000 Class B Floating Rate Asset Backed Certificates,
Series 2004-2, rated Aa3
$522,000,000 Class A Fixed Rate Asset Backed Certificates,
Series 2004-3, rated Aaa
$30,000,000 Class B Fixed Rate Asset Backed Certificates,
Series 2004-3, rated Aa3
$918,500,000 Class A Floating Rate Asset Backed Certificates,
Series 2004-4, rated Aaa
$82,500,000 Class B Floating Rate Asset Backed Certificates,
Series 2004-4, rated Aa3
$835,000,000 Class A Floating Rate Asset Backed Certificates,
Series 2004-5, rated Aaa
$75,000,000 Class B Floating Rate Asset Backed Certificates,
Series 2004-5, rated Aa3
$501,000,000 Class A Floating Rate Asset Backed Certificates,
Series 2005-1, rated Aaa
$45,000,000 Class B Floating Rate Asset Backed Certificates,
Series 2005-1, rated Aa3
$501,000,000 Class A Floating Rate Asset Backed Certificates,
Series 2005-2, rated Aaa
$45,000,000 Class B Floating Rate Asset Backed Certificates,
Series 2005-2, rated Aa3
$417,500,000 Class A Floating Rate Asset Backed Certificates,
Series 2005-4, rated Aaa
$37,500,000 Class B Floating Rate Asset Backed Certificates,
Series 2005-4, rated Aa3
$918,500,000 Class A Floating Rate Asset Backed Certificates,
Series 2005-5, rated Aaa
$82,500,000 Class B Floating Rate Asset Backed Certificates,
Series 2005-5, rated Aa3
$584,500,000 Class A Floating Rate Asset Backed Certificates,
Series 2005-7, rated Aaa
$52,500,000 Class B Floating Rate Asset Backed Certificates,
Series 2005-7, rated Aa3
$417,500,000 Class A Floating Rate Asset Backed Certificates,
Series 2005-8, rated Aaa
$37,500,000 Class B Floating Rate Asset Backed Certificates,
Series 2005-8, rated Aa3
$584,500,000 Class A Floating Rate Asset Backed Certificates,
Series 2006-A, rated Aaa
$52,500,000 Class B Floating Rate Asset Backed Certificates,
Series 2006-A, rated Aa3
$584,500,000 Class A Floating Rate Asset Backed Certificates,
Series 2006-B, rated Aaa
$52,500,000 Class B Floating Rate Asset Backed Certificates,
Series 2006-B, rated Aa3
$835,000,000 Class A Floating Rate Asset Backed Certificates,
Series 2006-1, rated Aaa
$75,000,000 Class B Floating Rate Asset Backed Certificates,
Series 2006-1, rated Aa3
$437,500,000 Class A Fixed Rate Asset Backed Certificates,
Series 2006-2, rated Aaa
$27,500,000 Class B Fixed Rate Asset Backed Certificates,
Series 2006-2, rated Aa3
$501,000,000 Class A Floating Rate Asset Backed Certificates,
Series 2006-3, rated Aaa
$45,000,000 Class B Floating Rate Asset Backed Certificates,
Series 2006-3, rated Aa3
$440,000,000 Class A Floating Rate Asset Backed Certificates,
Series 2007-1, rated Aaa
$27,500,000 Class B Floating Rate Asset Backed Certificates,
Series 2007-1, rated A2
$440,000,000 Class A Floating Rate Asset Backed Certificates,
Series 2007-2, rated Aaa
$27,500,000 Class B Floating Rate Asset Backed Certificates,
Series 2007-2, rated A2
$528,000,000 Class A Floating Rate Asset Backed Certificates,
Series 2007-3, rated Aaa
$33,000,000 Class B Floating Rate Asset Backed Certificates,
Series 2007-3, rated A2
$704,000,000 Class A Floating Rate Asset Backed Certificates,
Series 2007-4, rated Aaa
$44,000,000 Class B Floating Rate Asset Backed Certificates,
Series 2007-4, rated A2
$440,000,000 Class A Floating Rate Asset Backed Certificates,
Series 2007-5, rated Aaa
$27,500,000 Class B Floating Rate Asset Backed Certificates,
Series 2007-5, rated A2
$880,000,000 Class A Floating Rate Asset Backed Certificates,
Series 2007-6, rated Aaa
$55,000,000 Class B Floating Rate Asset Backed Certificates,
Series 2007-6, rated A2
$792,000,000 Class A Floating Rate Asset Backed Certificates,
Series 2007-7, rated Aaa
$49,500,000 Class B Floating Rate Asset Backed Certificates,
Series 2007-7, rated A2
$1,056,000,000 Class A Floating Rate Asset Backed
Certificates, Series 2007-8, rated Aaa
$66,000,000 Class B Floating Rate Asset Backed Certificates,
Series 2007-8, rated A2
$2,530,000,000 Class A Floating Rate Asset Backed
Certificates, Series 2008-1, rated Aaa
$158,125,000 Class B Floating Rate Asset Backed Certificates,
Series 2008-1, rated A2
$1,200,000,000 Class A Floating Rate Asset Backed
Certificates, Series 2008-2, rated Aaa
$75,001,000 Class B Floating Rate Asset Backed Certificates,
Series 2008-2, rated A2
$1,500,000,000 Class A Floating Rate Asset Backed
Certificates, Series 2008-3, rated Aaa
$93,751,000 Class B Floating Rate Asset Backed Certificates,
Series 2008-3, rated A2
$535,000,000 Class A Floating Rate Asset Backed Certificates,
Series 2008-4, rated Aaa
$33,438,000 Class B Floating Rate Asset Backed Certificates,
Series 2008-4, rated A2
$800,000,000 Class A Floating Rate Asset Backed Certificates,
Series 2008-5, rated Aaa
$50,000,000 Class B Floating Rate Asset Backed Certificates,
Series 2008-5, rated A2
Up to $5,000,000,000 Class A Asset Backed Certificates,
Series 2008-A, rated Aaa
Up to $312,505,000 Class B Asset Backed Certificates,
Series 2008-A, rated A2
$1,350,000,000 Class A Floating Rate Asset Backed
Certificates, Series 2008-6, rated Aaa
$84,375,000 Class B Floating Rate Asset Backed Certificates,
Series 2008-6, rated A2
$525,000,000 Class A Floating Rate Asset Backed Certificates,
Series 2008-7, rated Aaa
$32,813,000 Class B Floating Rate Asset Backed Certificates,
Series 2008-7, rated A2
$650,000,000 Class A Floating Rate Asset Backed Certificates,
Series 2008-8, rated Aaa
$40,625,000 Class B Floating Rate Asset Backed Certificates,
Series 2008-8, rated A2
$550,000,000 Class A Floating Rate Asset Backed Certificates,
Series 2008-9, rated Aaa
$34,375,000 Class B Floating Rate Asset Backed Certificates,
Series 2008-9, rated A2
Issuer: American Express Credit Account Secured Note Trust 2004-C
$57,000,000 Floating Rate Secured Notes, rated
Baa1
Issuer: American Express Credit Account Secured Note Trust 2004-1
$72,000,000 Floating Rate Secured Notes, rated
Baa1
Issuer: American Express Credit Account Secured Note Trust 2004-2
$36,000,000 Floating Rate Secured Notes, rated
Baa1
Issuer: American Express Credit Account Secured Note Trust 2004-3
$48,000,000 Floating Rate Secured Notes, rated
Baa1
Issuer: American Express Credit Account Secured Note Trust 2004-4
$99,000,000 Floating Rate Secured Notes, rated
Baa1
Issuer: American Express Credit Account Secured Note Trust 2004-5
$90,000,000 Floating Rate Secured Notes, rated
Baa1
Issuer: American Express Credit Account Secured Note Trust 2005-1
$54,000,000 Floating Rate Secured Notes, rated
Baa1
Issuer: American Express Credit Account Secured Note Trust 2005-2
$54,000,000 Floating Rate Secured Notes, rated
Baa1
Issuer: American Express Credit Account Secured note Trust 2005-4
$45,000,000 Floating Rate Secured Notes, rated
Baa1
Issuer: American Express Credit Account Secured Note Trust 2005-5
$99,000,000 Floating Rate Secured Notes, rated
Baa1
Issuer: American Express Credit Account Secured Note Trust 2005-7
$63,000,000 Floating Rate Secured Notes, rated
Baa1
Issuer: American Express Credit Account Secured Note Trust 2005-8
$45,000,000 Floating Rate Secured Notes, rated
Baa1
Issuer: American Express Credit Account Secured Note Trust 2006-A
$63,000,000 Floating Rate Secured Notes, rated
Baa1
Issuer: American Express Credit Account Secured Note Trust 2006-B
$63,000,000 Floating Rate Secured Notes, rated
Baa1
Issuer: American Express Credit Account Secured Note Trust 2006-1
$90,000,000 Floating Rate Secured Notes, rated
Baa1
Issuer: American Express Credit Account Secured Note Trust 2006-2
$35,000,000 Fixed Rate Secured Notes, rated Baa1
Issuer: American Express Credit Account Secured Note Trust 2006-3
$54,000,000 Floating Rate Secured Notes, rated
Baa1
Issuer: American Express Credit Account Secured Note Trust 2007-1
$32,500,000 Floating Rate Secured Notes, rated
Baa2
Issuer: American Express Credit Account Secured Note Trust 2007-2
$32,500,000 Floating Rate Secured Notes, rated
Baa2
Issuer: American Express Credit Account Secured Note Trust 2007-3
$39,000,000 Floating Rate Secured Notes, rated
Baa2
Issuer: American Express Credit Account Secured Note Trust 2007-4
$52,000,000 Floating Rate Secured Notes, rated
Baa2
Issuer: American Express Credit Account Secured Note Trust 2007-5
$32,500,000 Floating Rate Secured Notes, rated
Baa2
Issuer: American Express Credit Account Secured Note Trust 2007-6
$65,000,000 Floating Rate Secured Notes, rated
Baa2
Issuer: American Express Credit Account Secured Note Trust 2007-7
$58,500,000 Floating Rate Secured Notes, rated
Baa2
Issuer: American Express Credit Account Secured Note Trust 2007-8
$78,000,000 Floating Rate Secured Notes, rated
Baa2
Issuer: American Express Credit Account Secured Note Trust 2008-1
$186,875,000 Floating Rate Secured Notes, rated
Baa2
Issuer: American Express Credit Account Secured Note Trust 2008-2
$88,637,000 Floating Rate Secured Notes, rated
Baa2
Issuer: American Express Credit Account Secured Note Trust 2008-3
$110,796,000 Floating Rate Secured Notes, rated
Baa2
Issuer: American Express Credit Account Secured Note Trust 2008-4
$39,518,000 Floating Rate Secured Notes, rated
Baa2
Issuer: American Express Credit Account Secured Note Trust 2008-5
$59,091,000 Floating Rate Secured Notes, rated
Baa2
Issuer: American Express Credit Account Secured Note Trust 2008-6
$99,716,000 Floating Rate Secured Notes, rated
Baa2
Issuer: American Express Credit Account Secured Note Trust 2008-7
$38,779,000 Floating Rate Secured Notes, rated
Baa2
Issuer: American Express Credit Account Secured Note Trust 2008-8
$48,012,000 Floating Rate Secured Notes, rated
Baa2
Issuer: American Express Credit Account Secured Note Trust 2008-9
$40,625,000 Floating Rate Secured Notes, rated
Baa2
Issuer: American Express Issuance Trust
$558,000,000 Class A Floating Rate Asset Backed Notes,
Series 2005-1, rated Aaa
$12,000,000 Class B Floating Rate Asset Backed Notes,
Series 2005-1, rated A2
$30,000,000 Class C Floating Rate Asset Backed Notes,
Series 2005-1, rated Baa2
$558,000,000 Class A Floating Rate Asset Backed Notes,
Series 2005-2, rated Aaa
$12,000,000 Class B Floating Rate Asset Backed Notes,
Series 2005-2, rated A2
$30,000,000 Class C Floating Rate Asset Backed Notes,
Series 2005-2, rated Baa2
$930,000,000 Class A Floating Rate Asset Backed Notes,
Series 2007-1, rated Aaa
$30,000,000 Class B Floating Rate Asset Backed Notes,
Series 2007-1, rated A2
$40,000,000 Class C Floating Rate Asset Backed Notes,
Series 2007-1, rated, Baa2
$930,000,000 Class A Floating Rate Asset Backed Notes,
Series 2007-2, rated Aaa
$30,000,000 Class B Floating Rate Asset Backed Notes,
Series 2007-2, rated A2
$40,000,000 Class C Floating Rate Asset Backed Notes,
Series 2007-2, rated Baa2
$850,000,000 Class Floating Rate Asset Backed Notes,
Series 2008-1, rated Aaa
$27,420,000 Class B Floating Rate Asset Backed Notes,
Series 2008-1, rated A2
$36,560,000 Class C Floating Rate Asset Backed Notes,
Series 2008-1, rated Baa2
$1,000,000,000 Class A Fixed Rate Asset Backed
Notes, Series 2008-2, rated Aaa
$26,526,000 Class B Floating Rate Asset Backed Notes,
Series 2008-2, rated A2
$34,483,000 Class C Floating Rate Asset Backed Notes,
Series 2008-2, rated Baa2
American Express Company is a New York-based holding company that
is comprised of a group of operating and financing subsidiaries that operates
in the global payment-services, charge card, credit
card and travel services industries. As of September 30,
2008, American Express reported total managed assets of $157
billion and shareholders equity of $13 billion.
For more information, please visit http://www.moodys.com.
New York
Mark DiRienz
Managing Director
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
Gregory J. Gemson
Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653