info

Yes No
Moodys.com
Terms of Use
REGULATORY AFFAIRS
CAREERS
ABOUT US
CONTACT US
HOME
Close
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” [at the end of this document], 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 inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, 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.            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.          

3.            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.

4.            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.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding 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
Announcement:

Moody's confirms ratings of Capital One credit card ABS

20 Dec 2010

Approximately $21.6 billion of asset-backed securities affected

New York, December 20, 2010 -- Moody's confirmed today the ratings on 47 classes of asset-backed securities issued out of the Capital One Multi-asset Execution Trust ("COMET"). Moody's has also confirmed the Ba1 (sf) Counterparty Instrument Rating to the Swap Agreement relating to credit card backed notes issued by COMET Class C(2004-3) (the "Counterparty Rating"). The COMET securities are backed by a $42 billion revolving pool of consumer and small business credit card receivables originated by Capital One Bank (USA), N.A. ("Capital One Bank"). These securities were initially placed under review for possible downgrade on July 28, 2010; the review period was extended on November 4.

RATINGS RATIONALE

The rationale for the review and confirmation of the COMET ratings was centered on the countervailing credit effects of an incremental weakening of the financial strength of the seller/servicer, Capital One Bank, and the improvement in the collateral backing the securitized COMET notes. We believe that the improvement in and trajectory of collateral performance offsets the negative implications of a downgrade of the seller/servicer If Capital One Bank is downgraded further, or if the improvement in collateral performance reverses, a downgrade of COMET's ratings would be likely, all else being equal. For example, if Capital One Bank were to be downgraded by one more notch to Baa1, the senior class of COMET ABS would likely be downgraded by as much as two notches..

CREDIT LINKAGE TO THE SELLER/SERVICER

The financial strength of the seller/servicer is an important factor in Moody's determination of card ABS ratings, as an issuer's ongoing willingness and ability to maintain card utility (i.e., the purchase rate) is a significant driver of trust collateral performance in an early amortization scenario. This linkage also reflects the ongoing role of a seller/servicer in card ABS programs (e.g. underwriting, risk management, and servicing). Therefore, as a result of the downgrade of Capital One Bank, we have adjusted our purchase rate assumption for COMET.

COMET THROUGH THE CREDIT CRISIS

Like others in the credit card sector, Capital One's trust performance materially deteriorated during the credit crisis. Unlike most others, however, Capital One chose not to increase the credit enhancement to its ABS notes. As a result, Moody's downgraded the two most junior classes of notes in 2009. The ratings on the more senior Class A and Class B notes, though marginally weaker, remained unchanged.

COLLATERAL PERFORMANCE IMPROVING

Since then, concerns about collateral performance for both Capital One and the industry as a whole have abated somewhat. As the economy emerges from recession, important economic drivers of credit card performance, in particular unemployment, have stabilized, and Moody's revised the outlook on the U.S. credit card ABS sector to stable from negative on November 22. In addition, the credit quality of securitized portfolios of credit cards, including COMET's, appears to be strengthening as evidenced by meaningful improvements in charge-offs and delinquency rates. For COMET, charge-offs have fallen from a peak of 12.7% in March 2010 to 9.4% in November, 2010, a drop of 26%, while the early-stage delinquencies are currently at historical lows. We expect these metrics to continue to improve.

Moody's changed its performance expectations for COMET in November. Our current expected range for the gross charge-off rate is 7.5%-9.5%, for the principal payment rate is 16%-19%, and for the yield is 20%-23%.

Performance expectations indicate our forward-looking view of the likely range of performance over the medium term. From time to time, we may, if warranted, change these expectations. Performance that falls outside a given range may indicate that the collateral's credit quality is stronger or weaker than anticipated when the related securities were rated. Even so, a deviation from the expected range will not necessarily result in a rating action nor does performance within expectations preclude such actions. The decision to take (or not take) a rating action is dependent on an assessment of a range of factors including, but not exclusively, the performance metrics.

COUNTERPARTY RATING

The Counterparty Instrument Rating is based upon the pari passu ranking of swap payments relative to the payments to the COMET Class C(2004-3) noteholders in the transaction waterfall. Consequently, in the ordinary course of events, the ability of COMET to honor its obligations to make the swap payments is considered equal to its ability to make the scheduled payments on the underlying notes. The ratings history of the swap is highly correlated to the ratings history of the related COMET Class C(2004-3) notes. As a result, given the confirmation of the COMET Class C(2004-3) Ba1 (sf) rating, the Counterparty Instrument Rating was also confirmed.

The complete rating actions are as follows:

Issuer: Capital One Multi-asset Execution Trust

$500,000,000 Class A (2004-1) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$500,000,000 Class A (2004-4) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$200,000,000 Class A (2004-5) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$500,000,000 Class A (2004-7) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$500,000,000 Class A (2004-8) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$750,000,000 Class A (2005-1) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$455,000,000 Class A (2005-6) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$500,000,000 Class A (2005-7) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$325,000,000 Class A (2005-9) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$500,000,000 Class A (2005-10) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$500,000,000 Class A (2006-1) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$400,000,000 Class A (2006-3) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$1,000,000,000 Class A (2006-4) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$500,000,000 Class A (2006-5) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$500,000,000 Class A (2006-6) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$1,000,000,000 Class A (2006-7) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$300,000,000 Class A (2006-8) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$500,000,000 Class A (2006-10) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$750,000,000 Class A (2006-11) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$500,000,000 Class A (2006-12) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$625,000,000 Class A (2007-1) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$700,000,000 Class A (2007-2) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$750,000,000 Class A (2007-4) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$600,000,000 Class A (2007-5) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$1,000,000,000 Class A (2007-7) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$500,000,000 Class A (2007-8) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$200,000,000 Class A (2007-A) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$500,000,000 Class A (2008-B) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$600,000,000 Class A (2008-3) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$750,000,000 Class A (2008-5) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$500,000,000 Class A (2008-6) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$1,000,000,000 Class A (2009-2) confirmed at Aaa (sf); previously on July 28,2010 placed under review for possible downgrade

$150,000,000 Class B (2004-3) confirmed at A2 (sf); previously on July 28, 2010 placed under review for possible downgrade

$184,605,000 Class B (2004-7) confirmed at A2 (sf); previously on July 28, 2010 placed under review for possible downgrade

$175,000,000 Class B (2005-1) confirmed at A2 (sf); previously on July 28, 2010 placed under review for possible downgrade

$100,000,000 Class B (2005-3) confirmed at A2 (sf); previously on July 28, 2010 placed under review for possible downgrade

$175,000,000 Class B (2006-1) confirmed at A2 (sf); previously on July 28, 2010 placed under review for possible downgrade

$350,000,000 Class B (2007-1) confirmed at A2 (sf); previously on July 28, 2010 placed under review for possible downgrade

$250,000,000 Class C (2003-3) confirmed at Ba1 (sf); previously on July 28, 2010 placed under review for possible downgrade

$100,000,000 Class C (2004-2) confirmed at Ba1 (sf); previously on July 28, 2010 placed under review for possible downgrade

$367,500,000 Class C (2004-3) confirmed at Ba1 (sf); previously on July 28, 2010 placed under review for possible downgrade

$175,000,000 Class C (2006-1) confirmed at Ba1 (sf); previously on July 28, 2010 placed under review for possible downgrade

$100,000,000 Class C (2006-2) confirmed at Ba1 (sf); previously on July 28, 2010 placed under review for possible downgrade

$125,000,000 Class C (2006-3) confirmed at Ba1 (sf); previously on July 28, 2010 placed under review for possible downgrade

$300,000,000 Class C (2007-1) confirmed at Ba1 (sf); previously on July 28, 2010 placed under review for possible downgrade

$250,000,000 Class C (2007-2) confirmed at Ba1 (sf); previously on July 28, 2010 placed under review for possible downgrade

$350,000,000 Class C (2007-4) confirmed at Ba1 (sf); previously on July 28, 2010 placed under review for possible downgrade

Counterparty Instrument Rating to the Swap Agreement relating to credit card backed notes issued by COMET Class C(2004-3) confirmed at Ba1 (sf); previously on July 28, 2010 placed under review for possible downgrade

The principal methodology used in rating COMET and the Counterparty Rating was "Moody's Approach to Rating Credit Card Receivables-Backed Securities -- Rating Methodology," published in April 2007, and the "Framework for De-Linking Hedge Counterparty Risks from Global Structured Finance Cashflow Transactions -- Rating Methodology," published in October 2010. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found on Moody's website. Further information on Moody's analysis of these transactions is available on www.moodys.com. In addition, Moody's publishes a weekly summary of structured finance credit, ratings and methodologies, available to all registered users of our website, at www.moodys.com/SFQuickCheck.

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

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

Moody's Investors Service
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's confirms ratings of Capital One credit card ABS
No Related Data.
© 2019 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 INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. 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 MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S 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. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S 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 AND MOODY’S 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 OR MOODY’S 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.

CREDIT RATINGS AND MOODY’S 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 the Moody’s 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 OR 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 rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS 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 rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

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

​​​​
Moodys.com