A pool of revenue on Barclays Bank owned revolving credit card accounts are being pledged to repay $609 million in asset-backed securities (ABS) being sold to investors from the Barclays Dryrock Issuance Trust, series 2025-1.
The deal uses a master trust structure to issue two classes of notes, A and B, both of which have an expected final payment date of Sept. 15, 2028. All notes in the deal have a legal final maturity date of July 15, 2031, according to S&P Global Ratings.
Filings with the Securities and Exchange Commission (SEC) say S&P and Fitch Ratings will assign AAA ratings to the class A notes. The class B notes provide subordination to the senior notes, at a level representing 18% of the pool balance, S&P said.
A significant percentage of the accounts in the underlying pool, about 74.2%, were co-branded with 13 different partner credit card accounts, the rating agency notes. Those brands, which represent 87.3% of the pool's receivables, include Barnes & Noble, Carnival Cruise Lines and Wyndham Hotels.
If the composition of Barclays Dryrock's underlying pool shifts—whether certain co-brand relationships are terminated or certain receivables being removed from the pool, S&P believes the credit support can help the deal withstand those changes.
Barclays Dryrock has a 6.00% minimum transferor interest, which S&P says will be sufficient to absorb dilutions or noncash reductions, in the receivables.
The high-quality pool is generally stable, S&P said. Some 59.8% of accounts had FICO scores higher than or equal to 720, and only 11.2% represented obligors with no FICO scores or scores less than 660. S&P found that 76.9% of the pool's receivables stem from accounts older than 60 months, down from 84.8% in the series 2023-2. Accounts aged under 12 months generated 3.2% of the receivables.
