American Express will issue $595 million of securities backed by credit card receivables in its first securitization of 2014.
Both Fitch Ratings and Standard & Poor’s have assigned preliminary ratings of AAA’/AAA’ respectively to the class A and A+’/ AA+’ ratings to the class B notes. Class A and B certificates of series 2014-1 will be publicly offered and are structured with a weighted average life of five-years.
Fitch expects to rate the $38 million class 1 notes, BBB+’. The class 2 notes structured under 2014-1 will not be rated by either ratings agency. The class 1 and class 2 notes will not be publicly offered.
Barclays, RBC Capital Market and RBS are the lead underwriters.
American Express will have 16 series outstanding in the master trust once the 2014-1 notes are issued. Principal receivables totaled approximately $28.1 billion as of March 31, 2014, according to the Fitch presale report.
Accounts with credit limits of $10,000 or more generated 50.1% of the receivables; 99.2% of the accounts are aged 60 months or more; 8.69% of the account holders made minimum payments, while 57.52% made full payments.
