Fitch Affirms Ratings on Golden Credit Card Trust

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed the ratings assigned to Golden Credit Card Trust. The Rating Outlook remains Stable. A detailed list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The affirmation is based on continued positive trust performance and robust breakeven multiples inline with expectations. The Stable Outlook indicates that Fitch expects the ratings to remain stable for the next one to two years.

Monthly payment rate (MPR), a measure of how quickly consumers are paying off their debt, has improved over the past year. As of the October 2015 distribution date, the 12-month average is 49.08%, up from the previous 12-month average of 48.21%.

Net charge-offs have remained relatively stable in the past year. Currently, the 12-month average is 2.09%, down from the previous year's 12 -month average of 2.13%. As of the October 2015 distribution date, the 12-month average 60+ day delinquencies were 1.11% compared to the 12-month average of 1.18% at this point last year. Fitch expects charge-off levels to remain stable in the near term given the high quality of the credit card portfolio.

The current 12-month average gross yield for Golden Credit Card Trust is 22.61% as of the October 2015 distribution date, compared with a 12-month average of 22.42% as of the October 2014 distribution date.

Fitch runs cash flow breakeven analysis by applying stress scenarios to three-, six-, and 12-month performance averages to evaluate the breakeven loss multiples at different rating levels. The performance variables that Fitch stresses are the gross yield, monthly payment rate, gross charge-off, and purchase rates.

Fitch's analysis included a comparison of observed performance trends over the past few months to Fitch's base case expectations for each outstanding rating category. As part of its ongoing surveillance efforts, Fitch will continue to monitor the performance of these trusts.

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 class A and B. 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.

Fitch has affirmed the following ratings:

Golden Credit Card Trust Series Enhancement Notes--Series enhancement notes at 'BBB+sf'; Outlook Stable.

Golden Credit Card Trust Series 2011-1--Class A asset-backed notes at 'AAAsf'; Outlook Stable;--Class B asset-backed notes at 'Asf'; Outlook Stable.

Golden Credit Card Trust Series 2012-1--Class A asset-backed notes at 'AAAsf'; Outlook Stable;--Class B asset-backed notes at 'Asf'; Outlook Stable.

Golden Credit Card Trust Series 2012-2--Class A asset-backed notes at 'AAAsf'; Outlook Stable;--Class B asset-backed notes at 'Asf'; Outlook Stable.

Golden Credit Card Trust Series 2012-4--Class A asset-backed notes at 'AAAsf'; Outlook Stable;--Class B asset-backed notes at 'Asf'; Outlook Stable.

Golden Credit Card Trust Series 2012-6--Class A asset-backed notes at 'AAAsf'; Outlook Stable;--Class B asset-backed notes at 'Asf'; Outlook Stable.

Golden Credit Card Trust Series 2013-1--Class A asset-backed notes at 'AAAsf'; Outlook Stable;--Class B asset-backed notes at 'Asf'; Outlook Stable.

Golden Credit Card Trust Series 2013-2--Class A asset-backed notes at 'AAAsf'; Outlook Stable;--Class B asset-backed notes at 'Asf'; Outlook Stable.

Golden Credit Card Trust Series 2014-1--Class A asset-backed notes at 'AAAsf'; Outlook Stable;--Class B asset-backed notes at 'Asf'; Outlook Stable.

Golden Credit Card Trust Series 2014-2--Class A asset-backed notes at 'AAAsf'; Outlook Stable;--Class B asset-backed notes at 'Asf'; Outlook Stable.

Golden Credit Card Trust Series 2015-1--Class A asset-backed notes at 'AAAsf'; Outlook Stable;--Class B asset-backed notes at 'Asf'; Outlook Stable;--Class C asset-backed notes at 'BBB+sf'; Outlook Stable.

Golden Credit Card Trust Series 2015-2--Class A asset-backed notes at 'AAAsf'; Outlook Stable;--Class B asset-backed notes at 'Asf'; Outlook Stable;--Class C asset-backed notes at 'BBB+sf'; Outlook Stable.

Golden Credit Card Trust Series 2015-3--Class A asset-backed notes at 'AAAsf'; Outlook Stable;--Class B asset-backed notes at 'Asf'; Outlook Stable;--Class C asset- backed notes at 'BBB+sf; Outlook Stable.

Additional information is available at www.fitchratings.com.

Applicable CriteriaCounterparty Criteria for Structured Finance and Covered Bonds (pub. 14 May 2014)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158Counterparty Criteria for Structured Finance and Covered Bonds: Derivative Addendum (pub. 14 May 2014)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744175Criteria 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=838868Global Credit Card ABS Rating Criteria (pub. 26 Jun 2015)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867482Global Structured Finance Rating Criteria (pub. 06 Jul 2015)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

Additional DisclosuresDodd-Frank Rating Information Disclosure Formhttps://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=994272Solicitation Statushttps://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=994272Endorsement Policyhttps://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20151117007036/en/

Fitch Ratings
Primary Analyst
Jenny Ovalle
Associate Director
+1-212-908-0849
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Herman Poon
Director
+1-212-908-0847
or
Committee Chairperson
Kevin Corrigan
Senior Director
+1-212-908-9156
or
Media Relations
Sandro Scenga, New York, +1 212-908-0278
[email protected]

Source: Fitch Ratings

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