OREANDA-NEWS. Fitch Ratings expects to assign the following ratings to Golden Credit Card Trust, series 2016-3:

--$TBD USD class A asset-backed notes 'AAAsf(EXP)'; Outlook Stable;
--$TBD CAD class B asset-backed notes 'Asf(EXP)'; Outlook Stable;
--$TBD CAD class C asset-backed notes 'BBB+sf(EXP)'; Outlook Stable.


High Collateral Quality: The underlying collateral characteristics play a vital role in the performance of a credit card ABS transaction. Fitch closely examines such collateral characteristics as credit quality, seasoning, geographic concentration, delinquencies and utilization rate on the cards.

Strong Collateral Performance Metric: As of April 2016, Golden Credit Card Trust's (GCCT) collateral performance metrics were in line with the Fitch indices. Charge-offs, 60+ day delinquencies and monthly payment rate have remained relatively stable over the past 24 months. Gross yield has been robust over the past two years.

Adequate Credit Enhancement: The class A notes of each existing series from 2016-3 will benefit from 6.50% credit enhancement derived through the subordination of both class B and Class C notes and the cash reserve account.

The class B notes will benefit from 2.00% credit enhancement derived through the subordination of class C notes and the cash reserve account.

The class C notes credit enhancement is based solely on the cash reserve account.

Quality Servicing Capabilities: Royal Bank of Canada (RBC) is an effective servicer, as evidenced by historical delinquency and loss performance of securitized receivables. Deterioration in the credit quality of RBC may affect the performance of the collateral pool backing the notes.


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 monthly payment rate (MPR); and 3) a combination stress of higher defaults and lower MPR.

The harshest stress scenario of a combined 75% increase to defaults and a 35% reduction of MPR could lead to a two-notch downgrade for class A and B. The rest of the stress scenarios are unlikely to impact the ratings.

For a discussion of the representations, warranties, and enforcement mechanisms available to investors in this transaction please see the related presale appendix.

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