[By Susan C. Knapp, vice president/senior credit officer, asset-backed group, Moody's Investors Service]

International credit and debit card vouchers are created when a cardholder uses a credit or debit card issued by a bank or other financial institution domiciled in his or her country of origin to pay for goods or services, or to obtain a cash advance, in a different country. A local financial institution in the country where the cardholder is travelling, usually a bank (the "processing bank"), then acquires the vouchers from merchants and submits the vouchers to a credit card clearing network such as Visa and/or MasterCard for payment. Banks such as Banamex, Bancomer, Banco de Credito del Peru, Turkiye Garanti Bankasi A.S., and Akbank T.A.S., have financed those voucher purchases by issuing securitizations backed by the present and future rights to receive such payments (also referred to as receivables throughout this report). In this article, we will explain how Moody's rates those transactions, and how properly structured transactions can, with certain exceptions, pierce the local currency rating of the originator and the country ceiling for foreign currency bonds where the originator is domiciled.

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