Moody's downgrades subordinated notes issued under UK Receivables Trust II and UK Receivables Trust
Paris, December 09, 2008 -- Moody's Investors Service has downgraded the ratings of 16 classes
of asset-backed notes issued under the UK Receivables Trust II,
the ratings of the Class B asset-backed notes issued by Chester
Asset Receivables Dealings No.11 PLC and the ratings of the Class
B asset-backed notes issued by Chester Asset Receivables Dealings
No.12 PLC under the UK Receivables Trust. A complete list
of rating actions is below.
The downgrades were prompted by Moody's decreasing the stressed
payment rate assumption on MBNA's UK credit card trust in order for it
to be better aligned with assumptions taken in other credit card trusts
rated by Moody's. The current economic environment places more
importance on making this adjustment. In addition, Moody's
expects that charge-offs in the trust may increase based on the
negative trend delinquencies are demonstrating, as well as an increased
use of debt management programmes. Moody's notes that the
Class A Notes issued by the Issuer are under negative pressure as a result
of the changes in assumptions and may experience more volatility should
performance of the trust deteriorate further. Finally, Moody's
has a negative outlook for UK credit card asset-backed securities.
The notes are backed by credit card receivables issued to UK customers.
As of 31 October 2008, the pools comprised over 8.8 million
accounts and more than GBP7.4 billion of assets backed the notes.
Under UK Receivables Trust II:
Issuers: Chester Asset Receivables Dealings 2001-B PLC,
Chester Asset Receivables Dealings 2002-A PLC, Chester Asset
Receivables Dealings 2003-B PLC, Chester Asset Receivables
Dealings 2003-C PLC, Chester Asset Receivables Dealings 2004-1
PLC
- GBP12,500,000 Asset Backed Floating Rate Notes due
2011, Class B, Series UK2001-B, downgraded to
A3 from A1
- GBP17,500,000 Asset Backed Floating Rate Notes due
2011, Class C, Series UK2001-B, downgraded to
Ba1 from Baa2
- EUR39,000,000 Asset Backed Floating Rate Notes due
2009, Class B, Series UK2002-A, downgraded to
A3 from A1
- EUR54,500,000 Asset Backed Floating Rate Notes due
2009, Class C, Series UK2002-A, downgraded to
Ba1 from Baa2
- GBP12,500,000 Asset Backed Floating Rate Notes due
2013, Class B, Series UK2003-B, downgraded to
A3 from A1
- GBP17,500,000 Asset Backed Floating Rate Notes due
2013, Class C, Series UK2003-B, downgraded to
Ba1 from Baa2
- EUR35,500,000 Asset Backed Floating Rate Notes due
2010, Class B, Series UK2003-C, downgraded to
A3 from A1
- EUR49,500,000 Asset Backed Floating Rate Notes due
2010, Class C, Series UK2003-C, downgraded to
Ba1 from Baa2
- GBP25,000,000 Asset Backed Floating Rate Notes due
2014, Class B, Series UK2004-1, downgraded to
A3 from A1
- GBP35,000,000 Asset Backed Floating Rate Notes due
2014, Class C, Series UK2004-1, downgraded to
Ba1 from Baa2
Issuer: Chester Asset Receivables Dealings Issuer Limited
- Series 2004-B1 EUR125,000,000 Class B Asset
Backed Floating Rate Notes due 2011, downgraded to A3 from A1
- Series 2004-C1 175,000,000 Class C Asset
Backed Floating Rate Notes due 2011, downgraded to Ba1 from Baa2
- Series 2006-B1 GBP50,000,000 Class B Asset
Backed Floating Rate Notes due 2013, downgraded to A3 from A1
- Series 2006-C1 GBP70,000,000 Class C Asset
Backed Floating Rate Notes due 2013, downgraded to Ba1 from Baa2
Under UK Receivables Trust:
Issuers: Chester Asset Receivables Dealings No. 11 PLC,
Chester Asset Receivables Dealings No. 12 PLC
- GBP20,000,000 Asset Backed Floating Rate Notes due
2010, Class B, Chester Asset Receivables Dealings No.11
PLC, downgraded to A3 from A1
- GBP12,000,000 Asset Backed Floating Rate Notes due
2011, Class B, Chester Asset Receivables Dealings No.12
PLC, downgraded to A3 from A1
Date of last rating action: 25 September 2008
Methodology used: "Moody's Approach to Rating Credit
Card Receivables-Backed Securities", 16 April 2007
Moody's ratings address only the credit risks associated with the transaction,
other non-credit risks have not been addressed, but may have
significant effect on yield to investors. Moody's ratings are subject
to revision, suspension or withdrawal at any time at our absolute
discretion. The ratings are expressions of opinion and not recommendations
to purchase, sell or hold securities.
The rating is published. Moody's will publicly disseminate any
change in the ratings through normal print and electronic media,
and in response to requests to the Moody's rating desk, in accordance
with Moody's standard practice at the time.
Moody's will continue to monitor the transaction on an ongoing basis.
For more information, please see Moody's research on www.moodys.com
or contact Moody's Client Service Desk on +44 20 7772 5454.
London
Benedicte Pfister
Managing Director
Structured Finance Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Paris
Christophe Germain
Vice President - Senior Analyst
Structured Finance Group
Moody's France S.A.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454