A pool of credit card receivables will secure $571.4 million in securitized certificates from the American Express Credit Account Master Trust, 2024-3.
The trust will issue the fixed-rate notes through two tranches of classes A and B certificates, according to ratings analysts from Fitch Ratings and S&P Global Ratings. Both agencies rate just the class A notes.
The class A and class B notes benefit from credit enhancement levels of 12.50% and 8.75%, respectively, and the class A notes benefit from the subordination of class B certificates, S&P said. The rating agency also noted that the trust's loss rate over a 12-month period, that ended May 2024, was about 60% of the U.S. bankcard Credit Card Quality Index (CCQI) and has historically trended below the CCQI loss rate. It's yield and payment rate have also historically outperformed the CCQI, S&P said.
Among the other credit highlights, Fitch notes that the trust's performance remains stronger than pre-pandemic levels, despite chargeoffs and delinquencies. As of the May 2024 collection period, the 12-month average 60-plus day delinquencies and gross chargeoffs were 0.51% and 1.83% respectively.
As for the pool, the account assets have an account balance of $1,840 across the board, while the account assets with a nonzero balance of $4,666. Accounts with credit limits of $10,000 or higher generated 51.72% of the receivables, while pay-over-time accounts with no preset spending limit accounted for 41.85% of the pool. Also, all the receivables have accounts aged 60 months or older, and most account holders (67.55%) made full payments.
Both S&P and Fitch assign AAA ratings to the class A notes, but neither rated the class B tranche.
