Negative headlines continue to linger in the European credit card sector. But while performance may be down on most U.K. master trusts, it won't necessarily translate into a negative ratings action. Just last week, while Egg Banking plc's master trust fate remained a topic of speculation, Capital One's Sherwood trust got the OK from Fitch Ratings despite having its own share of problems.

Fitch analysts said last week that they plan to take no action on Sherwood while waiting for recent improvement measures made by the issuer to take effect. Capital One currently has the highest level of charge-offs among the trusts at 9.03%, while total delinquencies are currently at 6.28%. Fitch attributes its decision to the recent detailed discussions with Capital One's senior management.

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