TEXT-S&P assigns Dryrock Issuance Trust 2012-1 prelim 'AAA (sf)' rating
OVERVIEW -- Dryrock Issuance Trust's series 2012-1 issuance is an ABS securitization backed by receivables generated from credit card accounts owned by Barclays Bank Delaware. -- We assigned our preliminary 'AAA (sf)' rating to the class A notes. -- The preliminary 'AAA (sf)' rating reflects our view of the transaction's credit support, timely interest and principal payments, and payment and legal structures, among other factors. NEW YORK (Standard & Poor's) Nov. 7, 2012--Standard & Poor's Ratings Services today assigned its preliminary ratings to Dryrock Issuance Trust's class A floating-rate asset-backed notes series 2012-1 (see list). The note issuance is an asset-backed securities transaction backed by receivables generated from credit card accounts owned by Barclays Bank Delaware. The preliminary rating is based on information as of Nov. 7, 2012. Subsequent information may result in the assignment of a final rating that differs from the preliminary rating. The preliminary rating reflects: -- Our view that the 21% credit support provided by the subordinated class B notes is sufficient to withstand the simultaneous stresses we apply to our 7.0%-9.0% base-case loss rate, 20.75%-22.75% base-case payment rate, 15.75%-17.75% base-case yield, and 0.0%-1.0% purchase rate assumptions for the notes. In addition, we used stressed excess spread and note interest rate assumptions to assess whether, in our opinion, sufficient credit support is available for the notes. All of the stress assumptions outlined above are based on our current criteria and assumptions (for more information, see "General Methodology And AssumptionsRELATED CRITERIA AND RESEARCH Related Criteria -- Revised Purchase And Payment Rate Assumptions For U.S. Credit Card ABS, Sept. 14, 2011 -- Principles Of Credit Ratings, Feb. 16, 2011 -- Methodology: Credit Stability Criteria, May 3, 2010 -- General Methodology And Assumptions For Rating U.S. ABS Credit Card Securitizations, April 19, 2010 Related Research -- Presale: Dryrock Issuance Trust - Series 2012-1, Nov. 7, 2012 -- U.S. Credit Card Quality Index: Overall Improvements Are Expected To Continue Throughout 2012, Oct. 1, 2012 -- U.S. Economic Forecast: He's Buying A Stairway To Heaven, Sept. 21, 2012 -- Industry Economic And Ratings Outlook: U.S. Credit Card ABS Fundamentals Remain Strong And Charge-Offs Are Low, Aug. 9, 2012 -- U.S. Credit Card ABS Issuer Report: Loss Rates Stayed Stable In Second-Quarter 2012 Despite A Sluggish Economy, Aug. 9, 2012 -- Global Structured Finance Scenario And Sensitivity Analysis: The Effects Of The Top Five Macroeconomic Factors, Nov. 4, 2011 PRELIMINARY RATING ASSIGNED Dryrock Issuance Trust - Series 2012-1 Class Rating Amount A AAA (sf) TBD B NR TBD NR--Not rated. TBD--To be determined.