(The following statement was released by the rating agency)
NEW YORK, October 29 (Fitch) Fitch Ratings has assigned the following ratings to
Canadian Imperial Bank of Commerce's CARDS II Trust, series 2015-3 credit card
receivables-backed CAD fixed-rate class A and CAD fixed-rate class B notes:
--CAD800,000,000 class A notes 'AAAsf '; Outlook Stable;
--CAD55,615,000 class B notes 'BBBsf'; Outlook Stable.
KEY RATING DRIVERS
Fitch's ratings are based on the underlying receivables pool, available credit
enhancement, Canadian Imperial Bank of Commerce's underwriting and servicing
capabilities, and the transaction's legal and cash flow structures, which employ
early amortization triggers.
RATING SENSITIVITIES
Fitch models three different scenarios when evaluating the rating sensitivity
compared to expected performance for credit card asset-backed securities
transactions: 1) increased defaults, 2) a reduction in purchase rate, and 3) a
combination stress of higher defaults and lower monthly payment rate (MPR).
Increasing default rate alone has the least impact on rating migration even in
the most severe scenario of a 75% increase in defaults. The rating sensitivity
to a reduced purchase rate is more pronounced with a severe stress, of a 100%
decrease, and leads to possible downgrades of the class A notes. The harshest
scenario assumes both default and MPR stresses occur simultaneously. Similarly,
the ratings would only be downgraded under the moderate stress of a 50% increase
in defaults and 25% reduction in MPR; however, the severe stress could lead to
more drastic downgrades to all classes.
To date, the CARDS II Trust transactions have exhibited strong performance with
all performance metrics within Fitch's initial expectations. For further
discussion of Fitch's sensitivity analysis, please see the related presale
report. For a discussion of the representations, warranties, and enforcement
mechanisms available to investors in this transaction please see the related
presale appendix.
DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in relation to this rating
action.
The presale report is available to all investors on Fitch's website at
'www.fitchratings.com'. For more information about Fitch's comprehensive
subscription service FitchResearch, which includes all presale reports,
surveillance, and credit reports on more than 20 asset classes, contact product
sales at +1-212-908-0800 or at 'webmaster@fitchratings.com'.
Contacts:
Jenny Ovalle
Associate Director
+1-212-908-0849
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
Secondary Analyst
John Alberici
Associate Director
+1-212-908-0370
Committee Chairperson
Michael Dean
Managing Director
+1-212-908-0556
Media Relations: Sandro Scenga, New York, Tel: +1 212-908-0278, Email:
sandro.scenga@fitchratings.com.
Additional information is available at www.fitchratings.com.
Applicable Criteria
Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14 May
2014)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158
Criteria for Interest Rate Stresses in Structured Finance Transactions and
Covered Bonds (pub. 19 Dec 2014)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=838868
Global Credit Card ABS Rating Criteria (pub. 26 Jun 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867482
Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952
Related Research
CARDS II Trust, Series 2015-3 -- Appendix
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=872657
Additional Disclosures
Dodd-Frank Rating Information Disclosure Form
https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr
_id=993116
Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=993116
Endorsement Policy
https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&det
ail=31
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