RBC Plans Canadian Credit Card ABS

Published September 17, 2013, 10:17 a.m. EDT

Updated September 17, 2013, 12:35 p.m. EDT

1 Min Read

RBC Plans Canadian Credit Card

The Royal Bank of Canada lined up a new securitization backed by a pool of credit card receivables to be issued from to the bank’s Golden Credit Card Trust, according to a Moody's Investors Service presale report.

Moody’s has assigned provisional ratings to the Series 2013-2 notes .

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The transaction is structured with US dollar-denominated floating rate senior notes rated ‘Aaa’; and a Canadian dollar fixed rate subordinate notes rated ‘Baa1’.

RBC has approximately CAD13.6 billion in outstanding credit card receivables, as of July 31. The Golden master trust one of the lowest charge-off rates among credit card issues in Canada. According to Moody’s, the trust was the “most stable” during the recession.

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