Financial credit

KBRA Assigns Preliminary Ratings to Mercury Financial Credit Card Master Trust Series 2022-3

NEW YORK–()–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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Disclosures

Further information on key credit considerations, sensitivity analyzes that consider factors that may affect these credit ratings and how they could lead to an upgrade or downgrade, and ESG factors (where they are a key factor in changing the credit rating or rating outlook) can be viewed in the full rating report mentioned above.

A description of all substantially significant sources that were used to prepare the credit rating and information on the methodology(ies) (including all significant models and sensitivity analyzes of key relevant rating assumptions, if any) used to determine credit rating are available in the Information Disclosure Form(s) located here.

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

Additional information relating to this rating metric is available in the information disclosure form(s) referenced above. Additional information regarding KBRA’s policies, methodologies, grading 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 United States Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a rating agency with the UK Financial Conduct Authority under the temporary registration scheme. Additionally, KBRA is designated as the Designated Rating Agency by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating provider.