Fitch Assigns Public Rtgs to World Fin'l Network Credit Card Master Note Trust, Series 2009-VFN
--Class A floating-rate 'AAAsf'; Outlook Stable;
--Class M fixed-rate 'AAsf'; Outlook Stable.
KEY RATING DRIVERS:
Fitch's ratings are based on the underlying receivables pool, available credit enhancement, Comenity Bank's underwriting and servicing capabilities, and the transaction's legal and cash flow structures, which employ early redemption triggers.
Fitch models three different scenarios when evaluating the rating sensitivity compared to expected performance for credit card asset-backed securities transactions: 1) increased defaults, 2) a reduction in purchase rate, and 3) a combination stress of higher defaults and lower monthly payment rate (MPR).
Increasing defaults alone has little impact on rating migration except in the most severe scenario of a 75% increase in defaults, which could result in downgrades. The rating sensitivity to a reduction in purchase rate is less pronounced, with no rating migration even in the severe scenario. The harshest scenario assumes increased defaults and reduced MPR simultaneously. All classes could be downgraded under the moderate stress of a 50% increase in defaults and 25% reduction in MPR.
DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in relation to this rating action.