KBRA Grants Preliminary Ratings to Mercury Financial Credit Card Master Trust Series 2022-1

NEW YORK–(BUSINESS WIRE)–KBRA assigns preliminary ratings to three classes of bonds issued by Mercury Financial Credit Card Master Trust, Series 2022-1 (“MFCCMT 2022-1”), a credit card asset-backed securitization issued by the Mercury Financial Credit Card Master Trust (“Master Trust”).

The notes of MFCCMT 2022-1 are collateralised and reimbursed by a portfolio of general purpose revolving credit card accounts in the Master Trust (“Trust Portfolio”) for which the Series 2022-1 Notes will receive a percentage interest in the Trust Portfolio. The accounts originated through the Mercury Financial Program and the Legacy Accounts acquired from a Delaware banking company. MFCCMT 2022-1 will include a rolling period of two years during which no principal payments will be made on the bonds unless an early redemption event occurs. Receivables in the Trust Portfolio are generated by accounts owned by First Bank & Trust. Wilmington Trust, National Association will be the backup servicer.

MFCCMT 2022-1, represents the company’s fourth securitization issued by the Master Trust. Past series include MFCCMT Series 2021-1, MFCCMT Series 2021-VFN1, and MFCCMT Series 2021-VFN2. The Company also previously issued four private securitisations of discrete trusts which have subsequently been repaid.

KBRA applied its Global Credit Card ABS Rating Methodology and Global Structured Finance Counterparty Methodology as part of its analysis of the transaction’s underlying collateral pool and proposed capital structure. KBRA also conducted an operational review of Mercury Financial, as well as a review of the transaction’s legal structure and transactional documents. KBRA will also review the operational agreements and legal advice for the transaction before closing.

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Further information on key credit considerations, sensitivity analyzes that look at factors that may affect these credit ratings and how they may lead to an upgrade or downgrade, and ESG factors (where they are a major driver of credit rating change or rating outlook) can be found in the full rating report referenced above.

A description is available of all material material sources used to prepare the rating and information on the methodology(ies) (including any material models and sensitivity analyzes of the relevant material rating assumptions, if any) used in determining the rating. in the information disclosure form(s) found here.

Information on the meaning of each rating category can be found here.

Further disclosures in relation to this rating action are available in the information disclosure form(s) referred to above. Additional information about KBRA policies, methodologies, rating scales and disclosures is available at www.kbra.com.

About KBR

Kroll Bond Rating Agency, LLC (KBRA) is a full-service rating agency registered with the US Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a credit rating agency with the UK Financial Conduct Authority under the temporary registration regime. In addition, KBRA has been designated by the Ontario Securities Commission as a designated rating organization for issuers of asset-backed securities to file a short-form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating agency.

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