KBRA assigns preliminary ratings to Mercury Financial Credit Card Master Trust Series 2022-2

NEW YORK–(BUSINESS THREAD)–KBRA assigns preliminary ratings to four classes of notes issued by Mercury Financial Credit Card Master Trust, Series 2022-2 (“MFCCMT 2022-2”), a credit card asset-backed securitization issued from Mercury Financial Credit Card Master Trust (“Master Trust”).

The 2022-2 MFCCMT Notes are secured by and repaid by a portfolio of revolving general purpose credit card accounts in the trust portfolio (“Trust Portfolio”) to which the Series 2022-2 Notes are assigned a percentage of interest in the trust portfolio. The accounts originated through Mercury Financial and legacy accounts purchased from a Delaware banking corporation. MFCCMT 2022-2 will include a 24-month rolling period during which no principal payments will be made on the notes unless an early redemption event occurs. Accounts receivable in the trust portfolio are generated by accounts owned by First Bank & Trust. Wilmington Trust, National Association will be the security manager.

MFCCMT 2022-2, represents the Company’s fifth securitization issued by the Master Trust. The previous series are MFCCMT 2022-1 series, MFCCMT 2021-1 series, MFCCMT 2021-VFN1 series and MFCCMT 2021-VFN2 series. The company has also previously issued four private securitizations issued from discrete trusts that have subsequently been repaid.

KBRA applied its global credit card ABS rating methodology, as well as its global structured finance counterparty methodology and its global ESG rating methodology as part of its analysis of the underlying collateral pool of the transaction and the proposed capital structure. KBRA considered its operational review of Mercury Financial as well as regular update calls with the company. The operating agreements and legal opinions of the transaction will be reviewed prior to closing.

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Learn more about key credit considerations, sensitivity analyzes that consider what factors may affect these credit ratings and how they could lead to an upgrade or downgrade, and ESG factors (where they are a key factor behind the change in credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all materially significant sources that have been used to prepare the credit rating and information on the methodology(s) (including material models and sensitivity analyzes of relevant key rating assumptions, if applicable) used is available to determine credit rating. on the information disclosure form found here.

Information on the meaning of each rating category can be found here here.

Additional information related to this rating action is available on the disclosure forms referenced above. Additional information about KBRA’s policies, methodologies, rating scales and disclosures is available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the US Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority under the temporary registration regime. In addition, KBRA is designated as the designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating provider.


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