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5 years ago
TEXT-S&P rates World Financial Network Credit Card Master Note Trust 2012-A
April 5, 2012 / 6:27 PM / 5 years ago

TEXT-S&P rates World Financial Network Credit Card Master Note Trust 2012-A

April 5 - OVERVIEW	
     -- World Financial Network Credit Card Master Note Trust's series 2012-A 	
note issuance is an ABS securitization backed by a collateral certificate 	
representing an ownership interest in the receivables held by World Financial 	
Network Credit Card Master Trust. The receivables are generated under consumer 	
credit card accounts originated through various merchant agreements.	
     -- We assigned our preliminary ratings to the class A, M, B, and C notes.	
     -- The preliminary ratings reflect our view of the transaction's credit 	
support, payment and legal structures, and timely interest and principal 	
payments, among other factors.	
    	
     April 5 - Standard & Poor's Ratings Services today assigned its preliminary
ratings to World Financial Network Credit Card Master Note Trust's $320 million
asset-backed notes series 2012-A (see list).	
	
The note issuance is an asset-backed securities transaction backed by a 	
collateral certificate representing an ownership interest in the receivables 	
held by World Financial Network Credit Card Master Trust. The receivables are 	
generated under consumer credit card accounts originated through various 	
merchant agreements.	
	
The preliminary ratings are based on information as of April 5, 2012. 	
Subsequent information may result in the assignment of final ratings that 	
differ from the preliminary ratings.	
	
The preliminary ratings reflect our view of: 	
     -- Our view that the credit support for each class of notes is sufficient 	
to withstand the simultaneous stresses we apply to our 8.25%-10.25% base-case 	
loss rate assumption, our 14.0%-16.0% base-case payment rate assumption, and 	
our 24.0%-26.0% base-case yield assumption for each preliminary rating 	
category. In addition, we use stressed excess spread assumptions to determine 	
if sufficient credit support is available for each preliminary rating 	
category. Our purchase rate assumption for this transaction is zero. All of 	
the stress assumptions outlined above are based on our current criteria (see 	
"General Methodology And AssumptionsRELATED CRITERIA AND RESEARCH	
     -- Presale: World Financial Network Credit Card Master Note Trust - 	
Series 2012-A, published April 5, 2012.	
     -- U.S. and Canada Credit Card Quality Index Report: Losses Among U.S. 	
Bankcards Declined Slightly In January, published Feb. 29, 2012.	
     -- Global Structured Finance Scenario And Sensitivity Analysis: The 	
Effects Of The Top Five Macroeconomic Factors, published Nov. 4, 2011.	
     -- Revised Purchase And Payment Rate Assumptions For U.S. Credit Card 	
ABS, published Sept. 14, 2011.	
     -- Principles Of Credit Ratings, published Feb. 16, 2011.	
     -- Methodology: Credit Stability Criteria, published May 3, 2010.	
     -- General Methodology And Assumptions For Rating U.S. ABS Credit Card 	
Securitizations, published April 19, 2010. 	
 	
PRELIMINARY RATINGS ASSIGNED	
World Financial Network Credit Card Master Note Trust - Series 2012-A	
	
Class    Rating             Amount	

A        AAA (sf)      250,000,000	
M        AA+ (sf)       12,500,000	
B        A+ (sf)        15,833,333	
C        BBB (sf)       41,666,667	
D        NR             13,333,334	
	
NR--Not rated.

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