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.

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