(The following statement was released by the rating agency)
NEW YORK, December 01 (Fitch) Fitch Ratings assigns the following ratings to
Golden Credit Card Trust, series 2015-4 asset-backed notes:
--CAD400,000,000 CAD class A 'AAAsf'; Outlook Stable;
--CAD19,251,337 CAD class B 'Asf'; Outlook Stable;
--CAD8,556,150 CAD class C 'BBB+sf'; Outlook Stable.
KEY RATING DRIVERS
High Collateral Quality: The underlying collateral characteristics play a vital
role in the performance of a credit card ABS transaction. Fitch closely examines
such collateral characteristics as credit quality, seasoning, geographic
concentration, delinquencies and utilization rates.
Strong Collateral Performance Metric: As of November 2015, Golden Credit Card
Trust's (GCCT) collateral performance metrics were in line with the Fitch
indices. Charge-offs, 60+ day delinquencies and monthly payment rate have
remained relatively stable over the past 24 months. Gross yield has been robust
over the past two years.
Adequate Credit Enhancement (CE): The class A notes will benefit from 6.50% CE
derived through the subordination of both class B and class C notes and the cash
reserve account.
The class B notes will benefit from 2.00% CE derived through the subordination
of class C notes and the cash reserve account.
The class C notes CE is based solely on the cash reserve account.
Quality Servicing Capabilities: Royal Bank of Canada (RBC) is an effective
servicer, as evidenced by historical delinquency and loss performance of
securitized receivables. Deterioration in the credit quality of RBC may affect
the performance of the collateral pool backing the notes.
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 monthly payment rate
(MPR); and 3) a combination stress of higher defaults and lower MPR.
The harshest stress scenario of a combined 75% increase to defaults and a 35%
reduction of MPR could lead to a two-notch downgrade for classes A and B, while
class C has no rating impact. The rest of the stress scenarios are unlikely to
impact the ratings.
DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in relation to this rating
action.
The publication of a RW&Es appendix is not required for this transaction.
Contact:
Primary Analyst
Jenny Ovalle
Associate Director
+1-212-908-0849
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
Secondary Analyst
Herman Poon
Director
+1-212-908-0847
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
Counterparty Criteria for Structured Finance and Covered Bonds: Derivative
Addendum (pub. 14 May 2014)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744175
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
Additional Disclosures
Dodd-Frank Rating Information Disclosure Form
https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr
_id=995739
Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=995739
Endorsement Policy
https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&det
ail=31
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