Moody’s Rates GE Capital $250 Million Credit Card Deal
Moody’s Investors Service has assigned a Aaa rating to the senior $250,000,000 Class A Notes, Series 2010-2
issued from the GE Capital Credit Card Master Note Trust. The Trust consists of private label and co-branded credit card
receivables generated on accounts originated and underwritten by GE Money
Bank. Retailers which are currently included in the Trust portfolio are,
among others, JCPenney, Lowe’s, Sam’s Club, Wal-Mart, Old Navy, GAP,
Banana Republic, Dillard’s, Paypal, and Belk.
The rating is based on the quality of the underlying pool of credit card
receivables, the expertise of the originator, GE Money Bank, and the
servicer, GE Capital Corporation, (Aa2/P-1), the transaction’s legal and
structural protections, including early amortization triggers, credit
enhancement in the form of a spread account for the primary benefit of
the Class C notes, and the Excess Collateral Amount. The spread account,
which is initially unfunded, may increase if excess spread falls below
prescribed levels. The transaction has a March 2015 expected principal
payment date. The Class A Notes constitute 75.0% of the total collateral amount of the
issuance and are supported by two subordinated classes — the Class B
Notes (12.00% of the total), the Class C Notes (8.25% of the total) and
the Excess Collateral Amount (4.75% of the total). Approximately 50% of the
receivables in the portfolio emanate from accounts with an age greater
than 60 months.