NEW YORK–(BUSINESS WIRE)–KBRA assigns preliminary ratings to four classes of notes issued by Mercury Financial Credit Card Master Trust, Series 2022-3 (“MFCCMT 2022-3”), an asset-backed credit card securitization issued by Mercury Financial Credit Card Master Trust Trust (“Master Trust”).
The MFCCMT 2022-3 Notes are collateralized and repaid by a portfolio of general purpose revolving credit card accounts in the Master Trust (“Trust Portfolio”) to which the Series 2022-3 Notes are assigned a percentage of Interest in the Trust Portfolio. The accounts were created through the Mercury financial program and legacy accounts acquired from a Delaware banking company. MFCCMT 2022-3 will include a 24-month renewable period during which no principal payments will be made on the Notes unless an Early Amortization Event occurs. Trust portfolio claims are generated by accounts held by First Bank & Trust. Wilmington Trust, National Association will be the backup repairer.
MFCCMT 2022-3, represents the seventh securitization of the Company issued by the Master Trust. Previous series are MFCCMT 2021-1 series, MFCCMT 2022-1 series, MFCCMT 2022-2 series, MFCCMT 2021-VFN1 series, MFCCMT 2021-VFN2 series and MFCCMT 2022-VFN1 series. The Company also previously issued four private securitizations issued by discrete trusts which were subsequently redeemed.
KBRA applied its Global Credit Card ABS Rating Methodology as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the transaction’s underlying collateral pool and proposed capital structure. KBRA reviewed its operational review of Mercury Financial as well as periodic update calls with the company. Operating agreements and legal opinions relating to the transaction will be reviewed prior to closing.
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