Fitch Cuts Outlook on Some Word Financial Card ABS
Fitch Ratings has lowered its outlook on some subordinate tranches of credit card backed notes issued by World Financial Network Credit Card Master Trust, citing rising chargeoffs.
Currently, the 12-month gross average is 8.91%, up from 7.75% as of the April 2016 distribution date.
In a report published Tuesday, the rating agency said that payments rates have also recently deteriorated, although performance of the trust receivables remains "within steady-state expectations."
While partially mitigated by an increased average yield, a continued charge-off performance deterioration will first affect the class C notes, the report states.
The current 12-month average gross yield for World Financial Network Master Note Trust is 36.49% as of the April 2017 distribution period.
Monthly payment rate (MPR), a measure of how quickly consumers are paying off their debt, has trended down over the past year. Currently, the 12-month average is 17.16%, down from 18.25% at the April 2016 distribution period. The current three-month average is 17.44%, down from 18.41% as of the April 2016 distribution date.
As of the April 2017 distribution period, the 12-month average 60+ day delinquencies were 3.64% compared to the 12-month average of 3.11% at this point last year. The current three-month average 60+ day delinquency rate is 3.81%, up from 3.22% as of the April 2016 distribution date.