TORONTO, Oct. 8, 2014 /CNW/ - Eagle Credit Card Trust ("Eagle") announced that, effective today, it has entered into arrangements to provide additional credit enhancement for the Eagle Series 2010-2 and Series 2013-1 Notes. The additional credit enhancement is in the form of letters of credit and will only be available so long as Moody's Investor Services Inc. ("Moody's") continues to rate the Eagle Notes. There can be no assurance that Moody's will continue to rate the Eagle Notes and Eagle may request the withdrawal of the Moody's ratings from the Eagle Notes in the future.
The letters of credit will provide an additional 9% of credit enhancement to each of the Series 2010-2 and Series 2013-1 Notes. Following the addition of the credit enhancement, Moody's has removed the Series 2010-2 and Series 2013-1 Notes from being under review for downgrade, affirmed the 'Aaa (sf)' ratings on the two Class A senior notes, upgraded the two Class B notes from 'A2 (sf)' to 'Aa2 (sf)' and upgraded the two Class C notes from 'Baa2 (sf)' to 'A2 (sf)'. The Class A senior notes are currently also rated 'AAA (sf)' / 'AAAsf' by DBRS Limited ("DBRS") / Fitch, Inc. ("Fitch"), respectively. The Class B notes are also rated 'A (sf)' / 'Asf' by DBRS / Fitch, respectively and the Class C notes are also rated 'BBB (sf)' / 'BBBsf' by DBRS / Fitch, respectively.
Forward-looking statements require certain assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that Eagle's expectations or conclusions will not prove to be accurate and that such assumptions may not be correct. Readers should not place undue reliance on these statements as a number of risk factors could cause Eagle's decisions to differ materially from its intentions expressed in this press release. These factors - which are not exhaustive and many of which are beyond Eagle's control and the effects of which can be difficult to predict - include: general economic and financial market conditions in Canada; the impact of changes in laws and regulations; credit risk; market risk; and liquidity risk and other risks discussed in Eagle's Annual Information Form dated April 22, 2014 and in its Management's Discussion and Analysis dated August 27, 2014.
When relying on Eagle's forward-looking statements to make decisions with respect to Eagle, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, Eagle does not undertake to update any of its forward-looking statements.
SOURCE: Eagle Credit Card Trust
For further information: Felix Wu, CFO, PC Bank, (416) 607-4058