Eagle Credit Card Trust provides update on Moody's rating withdrawal

TORONTO, Sept. 16, 2014 /CNW/ - Eagle Credit Card Trust ("Eagle") announces that Moody's has informed Eagle that Moody's is unwilling to withdraw their ratings on the Eagle Series 2010-2 and 2013-1 Notes at this juncture. 

As indicated in the Eagle press release dated August 25, 2014, President's Choice Bank ("PC Bank") is concerned about the potential impact on the Eagle Notes from the proposed changes to Moody's methodology for credit-card receivables-backed securities.  In particular, PC Bank is concerned that the revised Moody's methodology may not provide sufficient credit for the strong historical performance of the PC Bank credit card portfolio in which Eagle has an interest, and places increased reliance on a Moody's rating on PC Bank.  At the present time, neither PC Bank nor PC Bank's parent, Loblaw Companies Limited, is rated by Moody's.  As a result of this uncertainty, in the press release dated August 25, 2014, Eagle announced that it was considering requesting that Moody's withdraw its ratings on the Series 2010-2 and 2013-1 Notes.  On September 3, 2014, Eagle formally requested that Moody's withdraw their ratings on the Series 2010-2 and 2013-1 Notes.  Following a press release dated September 15, 2014 in which Eagle indicated that it had requested the rating withdrawal and that Moody's had not yet provided a response to the ratings withdrawal request, Moody's advised Eagle that they would not be willing to withdraw their ratings on the Eagle Notes at this time. 

Eagle will continue to pursue the withdrawal of the Moody's ratings from the Eagle Notes. 

In addition to Moody's, the Series 2010-2 and Series 2013-1 Notes have the following ratings from DBRS Limited ("DBRS") and Fitch, Inc. ("Fitch"):

  • Series 2010-2 and Series 2013-1 Class A Notes are rated 'AAA (sf)' / 'AAAsf' by DBRS / Fitch, respectively
  • Series 2010-2 and Series 2013-1 Class B Notes are rated 'A (sf)'/ 'Asf' by DBRS / Fitch, respectively
  • Series 2010-2 and Series 2013-1 Class C Notes are rated 'BBB (sf)' / 'BBBsf' by DBRS / Fitch, respectively.

SOURCE: Eagle Credit Card Trust

For further information: Felix Wu, CFO, PC Bank, (416) 607-4058.

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