Fitch’s Card ABS Review Affirmed at 98%

Fitch Ratings’ credit card portfolio review indicates that
the vast majority of credit card asset backed security (ABS) classes
remain well insulated from loss. The robust credit card structures
combined with bank efforts to actively manage risk and in some cases
increase transaction level credit enhancement have resulted in Fitch
affirming 467, or 98% of its credit card ABS ratings including all
‘AAAs’. However, as credit card charge-offs and delinquencies are
setting record highs and are expected to continue increasing throughout
2009, Fitch has revised its Rating Outlook to Negative for several
classes of credit card ABS and placed certain classes on Rating Watch
Negative. Specifically, 76 ratings are revised to Rating Outlook
Negative and 10 ratings are placed on Rating Watch Negative. In the most recent review, Fitch applied a custom charge-off forecast
for each trust. This forecast was derived by applying delinquency roll
rates observed over the last six months to current delinquencies and
incorporating the effect of Fitch’s unemployment forecast of 10% by
early 2010. Fitch’s research has shown that credit card charge-offs are
highly correlated to the unemployment rate, with a 1:1 relationship for
prime credit cards. Fitch will continue to monitor macro-level economic conditions and the
impact on industry and trust level performance variables, and update the
Rating Outlooks accordingly.

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Intersections Takes Small Dip in Q1 Revenue

Identity risk management specialist Intersections reported revenue for the first quarter of 2009 was $87.3 million, compared to
$85.9 million for the quarter ended March 31, 2008 and $88.1 million for
the quarter ended December 31, 2008, an increase of 1.6 percent and a
decrease of 1.0 percent, respectively. EBITDA before share based
compensation for the first quarter of 2009, prior to non-cash impairment
charges, was $5.1 million. Net loss for the quarter ended March 31, 2009
was $558 thousand, compared to income of $3.4 million for the quarter
ended March 31, 2008. Total subscribers decreased to approximately 4.5 million as of March 31,
2009, compared to approximately 4.7 million subscribers as of December
31, 2008. Subscriber additions of approximately 759 thousand in the
For complete details about first quarter of 2009 were offset by subscriber cancels of 952 thousand. Intersections’ latest results visit CardData ([www.carddata.com](http://www.carddata.com)).

INTERSECTIONS REVENUES
1Q/08: $85.9 million
2Q/08: $94.2 million
3Q/08: $93.4 million
4Q/08: $88.1 million
1Q/09: $87.3 million
Source: CardData (www.carddata.com)

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Survey Indicates Women Hit Harder Then Men in Identity Theft

According to a survey on the impact of identity theft
conducted by Affinion Security Center, women suffer more from identity
theft than men, and when victimized, lose more money and take more time
to restore their identities. They also change their behavior more
dramatically following the theft. The national survey
polled 808 households, half of whom had been victims of identity theft
and half of whom had not. The findings coincide with a recent study from
Javelin Research, which found that overall women are 26 percent more
likely to experience identity theft than men. This study found that almost twice as many female victims of identity
theft surveyed by Affinion experienced unreimbursed losses of $1,000 or
more due to identity theft, when compared to male victims of the crime.
Women were also less likely than men to report no unreimbursed losses.
It also took women longer than men to restore their identities.
The Affinion Security Center survey also offers a new perspective on a
deep divide between how women and men are affected by the crime, and how
concerned women are about becoming victims as well as how they respond
to being defrauded.

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India’s ICICI Bank To Offer Visa Debit Cards in the U.S.

ICICI Bank Limited,India’s largest credit card issuer and Visa
have announced a strategic relationship to offer Visa Debit cards to its
Global Indian Account and other checking account customers at its New
York branch. The Global Indian Account provides customers with
simultaneous access to a US$ Checking account at the Bank’s New York
Branch for use in the U.S. and a Rupee NRE account at ICICI Bank Limited
for their use in India. The US$ Checking account will come with a Visa
Debit card that can be used at millions of merchant locations and ATMs
worldwide; the accounts will have Internet banking capabilities for
electronic fund transfers – including cross border remittances – and
will primarily be targeted at the large Indian expatriate community
working in the U.S.

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Advanta Takes Steps to Reduce Losses

Advanta’s Board of Directors has approved a plan designed to
dramatically limit the Company’s credit loss exposure and maximize its
capital and its liquidity measures. Advanta Bank Corp. will use up to $1.4 billion to make a cash tender
offer for Advanta Business Card Master Trust Class A senior notes at a
price between 65% and 75% of their face value in a modified Dutch Auction.
Advanta Corp. will make a cash tender offer for any or all of the $100
million of 8.99% Capital Securities issued by Advanta Capital Trust I at
20% of their face value. Advanta’s securitization trust will go into early amortization based
on May’s performance. Early amortization will officially be determined
on June 10.
Since the securitizations will not be permitted to fund new receivables
after June 10, the Company will shut down all credit card accounts to
future use at that time. Neither Advanta Bank Corp. nor any other
Advanta-related entity will fund activity on its balance sheet from the
accounts. Therefore, the Company will not take any off-balance sheet
receivables onto its balance sheet. Shutting down the accounts will not
accelerate payments required from cardholders on existing balances.
In early amortization almost all of the receipts from cardholders are
required to be paid to the securitization trust’s noteholders and to the
Company’s seller’s interest (its on-balance sheet share of the
receivables). The securitization trust’s notes are obligations of the
trust and not of any Advanta entity. The Company is only at risk with
respect to the off-balance sheet obligations to the extent of its
residual interests. The Company will continue to service and collect the securitization trust’s credit card receivables and its own receivables. This, along with taking appropriate actions to adjust expenses to be consistent with these activities, will be the Company’s first priority.

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Credit Card ABS Portfolio Under Analysis by SMARTView

Fitch Ratings has placed all 29 classes of U.S. credit card asset-backed
securities (ABS) transactions issued by 1st Financial Bank ‘Under
Analysis’. Fitch will be issuing a rating action within 30 days. Of the
618 classes of Fitch rated U.S. Credit Card ABS transactions totaling $
293.79 billion, 589 were designated with a SMARTView date of May 11,
2009, indicating that no in-depth review is necessary.Fitch analysts run the data through various
internal algorithms that identify classes of a transaction as possible
candidates for upgrade or downgrade. Fitch’s analysts scrutinize the
output to decide which deals need an in-depth review, which are
classified as ‘Under Analysis’, and those deals with no significant
changes, which can be given a SMARTView date.

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MasterCard and MLB.com To Offer Discounts

Mastercard and Major League Baseball has rolled out a new online ticket savings program that offers 10% or more for select games during the 2009 season. All 30 Major League Clubs will offer an array of promotions
geared toward families and/or kids. The Fan Value Corner on MLB.com displays the numerous ticket
and event initiatives available to fans while each Club’s website also
has a Fan Value Corner showcasing the Club’s ticket promotions.
Some highlights of the MLB.com/MasterCard initiative include: Arizona Diamondbacks: Every Tuesday home game will feature $10
discounts off Baseline Reserved seats; Chicago White Sox: Offering $10 savings off Upper Box and Upper Reserve seats for a select home game every month, beginning April 28 against Seattle Mariners; Los Angeles Angels of Anaheim: Offering half-price tickets for Field Box, Terrace
Box, Terrace Box WC and View MVP seats for a select home game every month and Los Angeles Dodgers: Every Tuesday home game will feature 15%
discounts for Field Box and Infield Reserve seats. See MLB.com/MasterCard for more details.

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OTI’s PARX To Exhibit at Parking Conference

Contactless smart card provider On Track Innovations announced that its
subsidiary PARX will exhibit its in-vehicle parking solutions, including the “EasyPark” electronic parking payment system at the 2009
International Parking Conference & Exposition, May 17-19 in Denver, Colorado. “EasyPark” enables drivers to be charged for the exact
period of time parked, while simplifying the monitoring, collection and
revenue distribution of parking fees. The “EasyPark” solution allows
municipalities and parking operators to reduce the cost of parking
operation, improve the service to its customers, encourage on street
parking, and create new opportunities to increase revenues.

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Dinerware Intros Virtual Client API

Restaurant POS developer Dinerware has announced via version 2.8.2, the availability of the “Virtual Client”, a SOAP, XML-based Application Programming Interface (API).Dinerware provides a core point-of-sale platform built on open
architecture. As a standalone product, Dinerware offers restaurateurs a
stable, intuitive restaurant touch-screen POS computer that IT staff can
customize or that owners can select and install certified software
tools, like DishCloud (online ordering services), TimeForge (labor
management), QSROnline (inventory management, enterprise reporting and
payroll services), and others. The Virtual Client API allows other applications to achieve
real-time access into the Dinerware restaurant POS system for purposes
of integration and customization. Dinerware customers reap the benefits
of selecting the exact extensions and tools appropriate for their
business needs and plans for growth.

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CRL Offers Quick Snapshot of Recent Issuer Activity

The Center for Responsible Lending took a sampling of credit card issuers’ recent activities to see how they
have responded to the Federal Reserve rule changes that were announced
in December 2008 but won’t take effect until July 2010 and found the top eight issuers, who account for 805 of credit card balances, are raising interest rates on a larger portion of customers than usual and increasing the number of fees they impose.Citigroup, Bank of
America, JP Morgan Chase, Capital One, HSBC, Discover, American Express, and Wells Fargo continue to apply a customer’s monthly payments to the least costly balance first, leaving the most expensive to continue to grow. None have changed their policy of imposing interest rate hikes for any reason, any time. Additionally, there is no evidence that any of these companies has expanded the period of time between when monthly bills are sent and when late fees apply.

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Businesses Still Investing in Tech, R&D and Marketing

The second annual “American Express/CFO Research Global Business & Spending Monitor” global survey of 285
senior finance executives reports they remain pessimistic about the prospects of rapid economic recovery, with nearly 70% of respondents expecting to see recovery begin sometime in 2010. When asked where it would be important to sustain spending, companies
identified information technology (69%), employee benefits (64%),
marketing/advertising/PR (57%), and research and development (54%).
Other areas of investment, such as merger opportunities and third-party
consultants, were much less likely to be rated as important categories
to sustain spending. Over two-thirds of respondents
predicted modest to substantial economic contraction over the next 12
months, and 63% reported that their companies’ capital investments will
decrease in 2009. To reduce costs, 85% are tightening controls over employee spending, 82% are placing greater emphasis on measuring and monitoring company financial performance and 71% are improving internal financial controls. Finance executives’ attitudes toward business travel told a similar story. Overall, 87% of respondents reported that their companies plan to spend less on business travel this year, with 44% expecting a decrease of more than 10%.

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GEMALTO PARTNER OF THE YEAR

Digital security provider Gemalto was
awarded “Value Partner of the Year” by wireless telecom provider Bharti Airtel.
During the “Airtel Partnership Meet 2009” in March,
Gemalto was the only digital security vendor
to be recognized at its Best Partner Awards ceremony, which honors the
top 10 suppliers and vendors out of 3,500
partners across 10 award categories. Since the beginning of
their decade-long relationship, Gemalto has
supported Bharti in its growth of customer base and services rendered
with customized and innovative solutions,
as well as reliable, on-time delivery and technical support.
With a global base of more than 91 million subscribers, Bharti Airtel
offers a wide range of products and services to
cater to different communication requirements.

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