March 20, 2012 / 2:32 PM / 5 years ago

TEXT-Fitch affirms all outstanding CARDS II notes

March 20 - Fitch Ratings has affirmed all Chester Asset Receivables Dealings
II (CARDS II) credit card master trust's notes. A full list of rating actions is
at the end of this release.	
	
The affirmations follow a review of the transactions, including a detailed
analysis of current performance, expectations for future performance as well as
a review of the structural features.	
	
The trust has generally experienced a stable performance since the last review
in February 2011. The trust charge-off rate as at January 2012 was 10.7%
compared with 9.0% at February 2011. 60-180 Delinquency rates declined to 4.2%
in January 2012 from 4.4% in February 2011. Yield rate performance has been
favourable over the past year partly because of the benefits from an ongoing
discount percentage scheme. Meanwhile, the monthly payment rate (MPR) has been
increasing over the past 12 months. The reported yield rate and MPR for January
2012 were 27.7% and 15.6%, respectively.	
	
Excess spread was high throughout 2011 for notes from each of the outstanding
series and no trapping levels were breached in the past year. In December 2011,
the transaction benefited from the sale of charged-off receivables, which caused
a significant increase in monthly yields and consequently excess spread figures.
The three-month average excess spread for the outstanding series were especially
high due to recoveries obtained by this sale: Series 2003-B - 20.1%, Series
2004-1 - 28.4%, De-linked -21.5%.	
	
Fitch tested the trust performance against revised base case expectations of 12%
for the charge-off rate, 20% for the yield rate and 12% for the MPR. The notes
pay a floating rate coupon linked to Euribor and Libor, which have recently been
at relatively low levels. Consequently, the series has benefited from the margin
between interest receipts on the collateral pool and coupon payments.	
	
The transactions are securitisations of credit card receivables originated by
MBNA Europe Bank Ltd ('A'/Stable/'F1') in the UK. MBNA Europe Bank Ltd is owned
by Bank of America Corporation ('A'/Stable/'F1'). There is no additional update
regarding the implementation of Bank of America's exit strategy from the credit
card markets in the UK and Ireland (see 'Fitch: No Immediate Rating Impact on
MBNA's UK ABS from BOA Exiting UK Credit Card Market', dated 18 August 2011 at
www.fitchratings.com).	
	
The rating actions are as follows:	
	
Linked Series (2009-1 Reference Series)	
Series 2003-B	
GBP220m class A notes affirmed at 'AAAsf'; Outlook Stable;	
GBP12.5m class B notes affirmed at 'AAsf'; Outlook Stable;	
GBP17.5m class C notes affirmed at 'Asf'; Outlook Stable;	
Series 2004-1	
GBP440m class A notes affirmed at 'AAAsf'; Outlook Stable;	
GBP25.0m class B notes affirmed at 'AAsf'; Outlook Stable;	
GBP35.0m class C notes affirmed at 'Asf'; Outlook Stable;	
	
De-linked Series (2009-2 Reference Series)	
2006-B1 GBP50m notes affirmed at 'AAsf'; Outlook Stable;	
2006-C1 GBP70m notes affirmed at 'Asf'; Outlook Stable;	
	
Additional information is available on www.fitchratings.com. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.	
	
Sources of information: Servicer reports and investor reports.	
	
Applicable criteria, "Global Structured Finance Rating Criteria", dated 13
August 2011, and "Global Credit Card ABS Rating Criteria", dated 28 June 2011,
are available at www.fitchratings.com.	
	
Applicable Criteria and Related Research:	
Global Structured Finance Rating Criteria	
Global Credit Card ABS Rating Criteria

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