Moody's places under review for downgrade mezzanine and subordinate notes issued by MBNA Europe Bank Limited
Approximately GBP650 milliion in asset-backed securities affected
Paris, September 25, 2008 -- Moody's Investors Service has placed under review for possible downgrade
the ratings on 16 classes of asset-backed notes ratings issued
under the UK Receivables Trust II, on the Class B of asset-backed
notes issued by Chester Asset Receivables Dealings No.11 PLC,
and on the Class B of asset-backed notes issued by Chester Asset
Receivables Dealings No.12 PLC under the UK Receivables Trust.
The complete rating actions are as follows:
UNDER REVIEW FOR POSSIBLE DOWNGRADE
Under UK Receivables Trust II:
Issuers: Chester Asset Receivables Dealings 2001-A PLC,
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, current rating A1
GBP17,500,000 Asset Backed Floating Rate Notes due 2011,
Class C, Series UK2001-B, current rating Baa2
39,000,000 Asset Backed Floating Rate Notes due 2009,
Class B, Series UK2002-A, current rating A1
54,500,000 Asset Backed Floating Rate Notes due 2009,
Class C, Series UK2002-A, current rating Baa2
GBP12,500,000 Asset Backed Floating Rate Notes due 2013,
Class B, Series UK2003-B, current rating A1
GBP17,500,000 Asset Backed Floating Rate Notes due 2013,
Class C, Series UK2003-B, current rating Baa2
35,500,000 Asset Backed Floating Rate Notes due 2010,
Class B, Series UK2003-C, current rating A1
49,500,000 Asset Backed Floating Rate Notes due 2010,
Class C, Series UK2003-C, current rating Baa2
GBP25,000,000 Asset Backed Floating Rate Notes due 2014,
Class B, Series UK2004-1, current rating A1
GBP35,000,000 Asset Backed Floating Rate Notes due 2014,
Class C, Series UK2004-1, current rating Baa2
Issuer: Chester Asset Receivables Dealings Issuer Limited
Series 2004-B1 125,000,000 Class B Asset Backed
Floating Rate Notes due 2011, current rating A1
Series 2004-C1 175,000,000 Class C Asset Backed
Floating Rate Notes due 2011, current rating Baa2
Series 2006-B1 GBP50,000,000 Class B Asset Backed
Floating Rate Notes due 2013, current rating A1
Series 2006-C1 GBP70,000,000 Class C Asset Backed
Floating Rate Notes due 2013, current rating 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,
current rating A1
GBP12,000,000 Asset Backed Floating Rate Notes due 2011,
Class B, Chester Asset Receivables Dealings No.12 PLC,
current rating A1
RATIONALE
Moody's has decreased the stressed payment rate assumption on MBNA's
UK credit card trust in order to be better aligned with assumptions taken
in other credit card trusts rated by Moody's. The current economic
environment places more import on making this adjustment. In addition,
Moody's anticipates that charge-offs in the trust may increase
predicated on a negative trend demonstrated by delinquencies as well as
an increased use of debt management programmes. Finally,
Moody's has a negative outlook for the U.K. credit
card asset-backed securities.
BACKGROUND
The notes are backed by credit card receivables issued to UK customers.
As of 31 August 2008, the pools comprised of over 8.8 million
accounts and totaled more than GBP 7.8 billion of assets backing
the asset-backed notes.
London
Jean Dornhofer
Senior Vice President
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