Fitch to Rate American Express Issuance Trust II, Series 2013-2; Presale
NEW YORK -- September 16, 2013
Fitch Ratings expects to assign the following ratings to American Express
Issuance Trust II's asset-backed notes, series 2013-2:
--$500,000,000 class A floating-rate 'AAAsf'; Outlook Stable;
--$22,222,000 class B floating-rate 'A+sf'; Outlook Stable;
--$33,334,000 class C floating-rate 'BBBsf'; Outlook Stable.
Key Rating Drivers:
Fitch's expected ratings are based on the underlying receivables pool,
available credit enhancement, American Express Centurion Bank (AECB) and
American Express Bank, FSB's (FSB) underwriting, American Express Travel
Related Services Company, Inc.'s (TRS) servicing capabilities, and the
transaction's legal and cash flow structures, which employ early amortization
Fitch models three different scenarios when evaluating the rating sensitivity
compared to expected performance for credit card asset-backed securities
transactions: 1) increased defaults; 2) a reduction in monthly payment rate
(MPR), and 3) a combination stress of higher defaults and lower MPR.
Increasing defaults and reducing MPR alone have the least impact on rating
migration even in the most severe scenario of a 75% increase in defaults. The
harshest scenario assumes both stresses in increased chargeoffs and reduction
to MPR to occur simultaneously. As such, the ratings would only be migrated
downward under the severe stress of a 50% increase in defaults and 20%
reduction in MPR.
To date, the transactions have exhibited strong performance with all
performance metrics within Fitch's initial expectations. For further
discussion of Fitch's sensitivity analysis, please see the related presale
report. For a discussion of the representations, warranties, and enforcement
mechanisms available to investors in this transaction please see the related
The presale report is available to all investors on Fitch's website at
'www.fitchratings.com'. For more information about Fitch's comprehensive
subscription service FitchResearch, which includes all presale reports,
surveillance, and credit reports on more than 20 asset classes, contact
product sales at +1-212-908-0800 or at 'firstname.lastname@example.org'.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Global Credit Card ABS Rating Criteria' (June 2013);
--'Global Structured Finance Rating Criteria' (May 2013);
--'Representations, Warranties, and Enforcement Mechanisms in Global
Structured Finance Transactions' (April 2012).
Applicable Criteria and Related Research: American Express Issuance Trust II,
Series 2013-2 (US ABS)
Global Credit Card ABS Rating Criteria
Global Structured Finance Rating Criteria
Representations, Warranties, and Enforcement Mechanisms in Global Structured
Finance Transactions -- Amended
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Herman C. Poon, +1 212-908-0847
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
Steven Stubbs, +1 212-908-0676
Sandro Scenga, +1 212-908-0278
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