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 downgrades ratings on CompuCredit's credit card-backed notes

19 Feb 2009

Approximately $928 million of asset-backed securities affected

New York, February 19, 2009 -- Moody's Investors Service has downgraded the ratings on 20 classes of asset-backed notes issued by the CompuCredit Credit Card Master Note Business Trust ("MNBT"), CompuCredit Credit Acquired Portfolio Voltage Master Business Trust ("Voltage MBT"), and the CompuCredit Acquired Portfolio Business Trust ("APBT"). These notes are backed by revolving pools of primarily sub-prime, unsecured, general purpose VISA credit card receivables. The rating actions today conclude our review, which commenced on October 27, 2008.

RATIONALE

The downgrades of CompuCredit Corporation's ("CompuCredit") ABS (see below for a complete listing) reflect concerns regarding a sharp erosion in collateral quality as well as heightened pressures on its funding and liquidity as the firm navigates a highly challenging environment for credit card lenders.

The respective collateral pools supporting all three of CompuCredit's trusts are comprised of deeply sub-prime credit card receivables and exhibit performance characteristics consistent with a riskier obligor base. Collateral performance has weakened across each of CompuCredit's trusts over the past several months as the economic conditions for the U.S. consumer continued their negative trajectory. We expect charge-offs to continue rising for the credit card sector, and for the CompuCredit trusts for the intermediate term. Continued stress on the consumer is also likely to place negative pressure on the principal payment rate. Additionally, increasing regulatory scrutiny may constrain CompuCredit's ability to implement portfolio re-pricing or fee adjustment initiatives. The proportion of CompuCredit's fee income is relatively high compared to most other credit card issuers.

With an expectation of worsening collateral performance throughout 2009 and into 2010, balance sheet strength and liquidity have become increasingly important dimensions to our credit analysis, especially for those issuers with limited alternative funding resources, like CompuCredit. The current consumer-led downturn is expected to have more pronounced effect on the performance of CompuCredit's trusts due to their significant exposure to sub-prime collateral. In addition, a heightened focus from bank regulators, as evidenced by the recent passage of the so-called UDAP regulations, and pending Congressional legislation may make it more difficult for CompuCredit to attract and retain partner banks. Unlike nearly all other credit card companies, CompuCredit does not have its own bank subsidiary; therefore, it relies on its partner banks to originate credit card receivables. It is the confluence of these funding risks, deteriorating collateral performance, and regulatory actions that prompted the review and downgrade of the ratings.

The senior bonds, though downgraded significantly to Baa1 for the MNBT, and Baa2 for the Voltage MBT and the APBT, and in all cases downgraded from their original ratings of Aaa, remain investment grade due in large part to strength of the respective securitization structures. The MNBT structure, which for the most part is typical of nearly all credit card asset-backed structures, includes a powerful cash flow allocation feature accelerate repayment of principal to noteholders if collateral performance deteriorates beyond prescribed levels (e.g. when the three-month average excess spread falls below 3%). This, along with 49% of subordination in the MNBT, provides significant protection to senior noteholders even if some of the risks outlined above come to pass.

For example, if the MNBT were to hit an early amortization trigger, one could assume all the following contemporaneous stresses before senior noteholders would take a first dollar of loss: a fully liquidating portfolio (i.e. CompuCredit could no longer fund - and cardholder could no longer make -- any new credit card purchases), charge-offs could rise to approximately 30% (from 17.46% as of January), the payment rate could fall to 2% (from 2.98% as of January), and yield fall to 18% (from 33.78% as of January).

The Voltage MBT and APBT are amortizing pools of revolving credit card loans, each containing similar structural features and current subordination levels of approximately 58% and 70%, respectively.

COLLATERAL PERFORMANCE EXPECTATIONS

Moody's has a negative outlook on the credit card sector. Specifically for the MNBT, our expectation for continuing degradation in collateral performance is reflected in revisions to the published performance expectations for the trust. The revised, medium-term expectations for each of the key performance metrics of the MNBT are a gross charge-off rate in the range of 19% - 22% (previously 15% - 18%), yield in the range of 27% - 30% (previously 29% - 32%), and a principal payment rate in the range of 2.5% - 4.5% (previously 5.5% - 7.5%).

The performance expectations for a given variable 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 the given range may indicate that the collateral's credit quality is stronger or weaker than we had 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.

The complete rating actions are as follows:

Issuer: CompuCredit Credit Card Master Note Business Trust

$164,220,000 Class A Series 2004-Two Asset Backed Notes, Downgraded to Baa1 from Aaa; previously on October 13, 2008 placed under review for possible downgrade

$70,840,000 Class B Series 2004-Two Asset Backed Notes, Downgraded to B1 from A2; previously on October 13, 2008 placed under review for possible downgrade

$28,980,000 Class C Series 2004-Two Asset Backed Notes, Downgraded to B3 from Baa2; previously on October 13, 2008 placed under review for possible downgrade

$22,540,000 Class D-1 Series 2004-Two Asset Backed Notes, Downgraded to Caa1 from Ba2; previously on October 13, 2008 placed under review for possible downgrade

$12,880,000 Class D-2 Series 2004-Two Asset Backed Notes, Downgraded to Caa3 from B2; previously on October 13, 2008 placed under review for possible downgrade

$164,220,000 Class A Series 2004-Three Asset Backed Notes, Downgraded to Baa1 from Aaa; previously on October 13, 2008 placed under review for possible downgrade

$70,840,000 Class B Series 2004-Three Asset Backed Notes, Downgraded to B1 from A2; previously on October 13, 2008 placed under review for possible downgrade

$28,980,000 Class C Series 2004-Three Asset Backed Notes, Downgraded to B3 from Baa2; previously on October 13, 2008 placed under review for possible downgrade

$22,540,000 Class D-1 Series 2004-Three Asset Backed Notes, Downgraded to Caa1 from Ba2; previously on October 13, 2008 placed under review for possible downgrade

$12,880,000 Class D-2 Series 2004-Three Asset Backed Notes, Downgraded to Caa3 from B2; previously on October 13, 2008 placed under review for possible downgrade

Issuer: CompuCredit Credit Acquired Portfolio Voltage Master Business Trust

(Amounts listed approximate issuance outstanding)

$130,422,000 Class A-1 Series 2006-1 Asset Backed Notes, Downgraded to Baa2 from Aaa; previously on October 13, 2008 placed under review for possible downgrade

$30,979,000 Class A-2 Series 2006-1 Asset Backed Notes, Downgraded to Ba2 from Aa2; previously on October 13, 2008 placed under review for possible downgrade

$27,881,000 Class A-3 Series 2006-1 Asset Backed Notes, Downgraded to B1 from A2; previously on October 13, 2008 placed under review for possible downgrade

$52,664,000 Class A-4 Series 2006-1 Asset Backed Notes, Downgraded to B3 from Baa2; previously on October 13, 2008 placed under review for possible downgrade

$8,719,000 Class B Series 2006-1 Asset Backed Notes, Downgraded to Caa3 from Ba2; previously on October 13, 2008 placed under review for possible downgrade

Issuer: CompuCredit Acquired Portfolio Business Trust

(Amounts listed approximate issuance outstanding)

$35,671,000 Class A-1 Series 2004-One Asset Backed Notes, Downgraded to Baa2 from Aaa; previously on October 13, 2008 placed under review for possible downgrade

$16,307,000 Class A-2 Series 2004-One Asset Backed Notes, Downgraded to Ba2 from Aa2; previously on October 13, 2008 placed under review for possible downgrade

$9,173,000 Class A-3 Series 2004-One Asset Backed Notes, Downgraded to B1 from A2; previously on October 13, 2008 placed under review for possible downgrade

$8,153,000 Class A-4 Series 2004-One Asset Backed Notes, Downgraded to B3 from Baa2; previously on October 13, 2008 placed under review for possible downgrade

$8,723,000 Class B Series 2004-One Asset Backed Notes, Downgraded to Caa3 from B2; previously on October 13, 2008 placed under review for possible downgrade

METHODOLOGY

The principal methodology used in rating the transaction was "Moody's Approach To Rating Credit Card Receivables-Backed Securities", which can be found at www.moodys.com in the Credit Policy & Methodologies directory, in the Ratings Methodologies subdirectory. Other methodologies and factors that may have been considered in the process of rating this issue can also be found in the Credit Policy & Methodologies directory.

BACKGROUND

CompuCredit, headquartered in Atlanta, GA is an originator and servicer of sub-prime credit card receivables. In addition to credit cards, the company provides the under-served consumer credit market with a variety of other credit and related financial services products. As of September 30, 2008, the company had reported assets of approximately $1.7 billion.

For more information see 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
William Black
Senior Vice President
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's downgrades ratings on CompuCredit's credit card-backed notes
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