OREANDA-NEWS. Fitch Ratings has assigned Swiss Credit Card Issuance 2015-1 AG and 2015-2 AG's notes, backed by Swiss credit card receivables, final ratings as follows:

Swiss Credit Card Issuance 2015-1 AG
CHF190.0 Class A notes, due June 2020: 'AAAsf'; Outlook Stable
CHF6.0 Class B notes, due June 2020: 'A+sf'; Outlook Stable
CHF4.0 Class C notes, due June 2020: 'BBBsf'; Outlook Stable

Swiss Credit Card Issuance 2015-2 AG
CHF190.0 Class A notes, due June 2022: 'AAAsf'; Outlook Stable
CHF6.0 Class B notes, due June 2022: 'A+sf'; Outlook Stable
CHF4.0 Class C notes, due June 2022: 'BBBsf'; Outlook Stable

Additionally Fitch has affirmed the ratings of the existing tranches issued by Swiss Credit Card No.2 Ltd as follows:

Swiss Credit Card Issuance No.2 Ltd
CHF189.8 Class A notes, due June 2018: affirmed at 'AAAsf'; Outlook Stable
CHF6.2m Class B notes, due June 2018: affirmed at 'A+sf'; Outlook Stable
CHF4.0m Class C notes, due June 2018: affirmed at 'BBBsf'; Outlook Stable

KEY RATING DRIVERS
Strong Asset Performance
A large share of the trust consists of either card types that require full monthly repayment, or users who voluntarily repay the entire outstanding balance monthly, which has a significant positive impact on transaction performance. Fitch has set charge-off expectations at 2.5%, significantly lower than base cases assigned for all UK credit card trusts. Steady-state monthly payment rate and yield assumptions were set at 60% and 13%, respectively.

Originator and Servicer Links
Due to the revolving nature of the underlying assets, performance is closely linked to the originator/servicer and will be influenced by monitoring and risk-management procedures. Fitch conducted a review of the origination and servicing functions of Credit Suisse and Swisscard in April 2015. The policies and procedures were satisfactory, as were implementation and controls.

Higher Set-Off, Commingling Risk
Deposit set-off risk is higher than in other Fitch-rated credit card transactions as Credit Suisse is one of the two largest deposit-taking institutions in Switzerland and holds the accounts of many high net worth individuals. The risk was estimated at around 2.56% at end-March 2015 after accounting for the Swiss deposit protection scheme, which protects deposits up to CHF100,000.

Commingling risk is also higher than in UK trusts, due to a combination of the high monthly payment rate and the fact that funds are collected to originator accounts for two days before being swept to transaction accounts. Fitch gained comfort from the high minimum seller share, which will be 11.1% at closing (compared to 5%-7% in UK trusts).

Credit enhancement for the class A notes of each series is provided via overcollateralisation created by the subordination of the class B and C notes. These notes will rank pari passu with the respective notes from the first and second issuances.

The upgrades of the existing class B notes reflect Fitch's updated asset assumptions assigned for the trust in the course of the expected rating analysis for the new issuances, as highlighted in the presale report.

RATING SENSITIVITIES
The senior note ratings are sensitive to changes in MPRs and charge-offs and thus only a long-term substantial change in payment behaviour paired with increasing charge-off rates would put the notes under rating pressure.

Expected impact upon the note rating of increased charge-offs (Class A/ Class B/ Class C)
Original Rating: 'AAAsf'/ 'A+sf'/ 'BBBsf'
Increase base case charge-offs by 15%: 'AA+sf' / 'A+sf'/ 'BBBsf'
Increase base case charge-offs by 25%: 'AA+sf'/ 'A+sf'/ 'BBBsf'
Increase base case charge-offs by 50%: 'AAsf'/ 'Asf'/ 'BBB-sf'
Expected impact upon the note rating of reduced MPR (Class A/ Class B/ Class C):
Original Rating: 'AAAsf'/'A+sf'/ 'BBBsf'
Reduce base case MPR by 15%: 'AA+sf'/ 'A+sf'/ 'BBBsf'
Reduce base case MPR by 25%: 'AAsf'/ 'A+sf'/ 'BBBsf'
Reduce base case MPR by 35%: 'AA-sf' /'A+sf'/ 'BBBsf'

Expected impact upon the note rating of reduced yield (Class A/ Class B/ Class C):
Original Rating: 'AAAsf'/ 'A+sf'/ 'BBBsf'
Reduce Yield by 15%: 'AA+sf'/ 'A+sf'/ 'BBBsf'
Reduce Yield by 25%: 'AA+sf' /'A+sf'/ 'BBB-sf'
Reduce Yield by 35%: 'AA+sf'/ 'Asf'/ 'BB+sf'

Expected impact upon the note rating of increased charge offs and reduced MPR (Class A/Class B/ Class C):
Original Rating: 'AAAsf'/'A+sf'/ 'BBBsf'
Increase base case charge-offs by 15% and reduce MPR by 15%: 'AA+sf' / 'A+sf'/ 'BBBsf'
Increase base case charge-offs by 25% and reduce MPR by 25%: 'AA-sf' / 'Asf'/ 'BBBsf'
Increase base case charge-offs by 50% and reduce MPR by 35%: 'A+sf' / 'BBB+sf'/ 'BB+sf'

DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.

DATA ADEQUACY
Fitch reviewed the results of a third party assessment conducted on the asset portfolio information, which indicated no adverse findings material to the rating analysis.

SOURCES OF INFORMATION
The information below was used in the analysis.
- Historical dynamic pool performance data provided by Swisscard from January 2004 to March 2014.