Last week's downgrade of the senior unsecured debt of Capital One Financial and its subsidiaries by Fitch Ratings to BBB' from BBB+' had a negligible impact on its ABS spreads, according to numerous sources. Also, the downgrade is not seen delaying the issuer's inaugural offering from the de-linked credit card master trust shown to investors last month.
"There was no significant reaction to the downgrade," noted one analyst. "Fitch's rating was out of line, two notches higher than Moody's and three higher than S&P. Fitch was playing catch up."
Additionally, a company spokesman said the new issuance vehicle would be out this month. Sources close to the deal have indicated that within the next two weeks Cap One will be out with up to $250 million each of either three- or five-year single-A and triple-B credit card notes.