-- American Express Credit Account Secured Note Trust 2012-5's note issuance is an ABS securitization backed by payments received by the owner trust relating to the collateral interest in American Express Credit Account Master Trust's (Amex CAMT's) series 2012-5 transaction. The collateral interest is collateralized by a pool of receivables in Amex CAMT, which are generated by American Express credit card accounts and Pay Over Time revolving credit accounts that are owned by American Express Centurion Bank or American Express Bank FSB.
-- We assigned our 'AA (sf)' rating to the class 1 notes.
-- The 'AA (sf)' rating reflects our view of the transaction's credit support, payment and legal structures, and pool characteristics, among other factors.
NEW YORK (Standard & Poor's) Nov. 8, 2012--Standard & Poor's Ratings Services today assigned its 'AA (sf)' rating to American Express Credit Account Secured Note Trust 2012-5's $44.643 million class 1 1.07% secured notes (see list). The note issuance is an asset-backed securities transaction backed by payments received by the owner trust relating to the collateral interest in American Express Credit Account Master Trust's (Amex CAMT's) series 2012-5 transaction.
The collateral interest is collateralized by a pool of receivables in Amex CAMT, which are generated by American Express credit card accounts and Pay Over Time revolving credit accounts that are owned by American Express Centurion Bank (Centurion) or American Express Bank FSB (FSB).
The rating reflects:
-- Our view that the credit support for the class 1 notes is sufficient to withstand the simultaneous stresses we apply to our 4.5%-6.5% base-case loss rate assumption, 24.0%-26.0% base-case payment rate assumption, and 17.0%-19.0% base-case yield assumption. In addition, we use stressed purchase rate, excess spread, and note interest rate assumptions to determine if sufficient credit support is available for the assigned rating category. All of the stress assumptions outlined above are based on our current criteria and assumptions (see "General Methodology And Assumptions For Rating U.S. ABS Credit Card Securitizations," published April 19, 2010, and "Revised Purchase And Payment Rate Assumptions For U.S. Credit Card ABS," published Sept. 14, 2011).
-- Our expectation that under a moderate ('BBB') stress scenario, all else being equal, our 'AA (sf)' rating will remain within one rating categories of the assigned rating in the next 12 months, based on our credit stability criteria (for more information, see "Methodology: Credit Stability Criteria," published May 3, 2010).
-- Our view of the credit risk inherent in American Express Credit Account Master Trust's (Amex CAMT's) series 2012-5 collateral loan pool based on our economic forecast, the Amex CAMT receivables' historical performance, the collateral characteristics, and vintage performance data.
-- The corporate credit ratings we assigned to American Express Travel Related Services Co. Inc. (TRS; A-/Stable/--), the servicer, and Centurion (A-/Stable/A-2) and FSB (A-/Stable/A-2), the originators. -- TRS' servicing and collection experience and general operational practices.
-- Our opinion of the quality and consistency of FSB's and Centurion's account origination, underwriting, and account management practices.
-- Our expectation of the timely payment of interest and the ultimate payment of principal by May 15, 2018, the legal final maturity date, based on stressed cash flow modeling scenarios using assumptions commensurate with the assigned 'AA (sf)' rating.
-- The class 1 notes' underlying payment structure and cash flow mechanics, and the transaction's legal structure. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities.
The Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available at "".
RELATED 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
-- EARNINGS UPDATE: American Express Co. Ratings Unaffected By Good Third-Quarter Results, Oct. 18, 2012
-- U.S. Economic Forecast: Long Time No See, Oct. 15, 2012
-- U.S. Credit Card Quality Index: Overall Improvements Are Expected To Continue Throughout 2012, Oct. 2, 2012
-- Industry Economic And Ratings Outlook: U.S. Credit Card ABS Fundamentals Remain Strong And Charge-Offs Are Low, Aug. 9, 2012
-- American Express Co., June 29, 2012
-- American Express Core Operating Subsidiaries Ratings Raised To 'A-' From 'BBB+'; Amex Ratings Affirmed; Outlook Stable, June 6, 2012
-- Global Structured Finance Scenario And Sensitivity Analysis: The Effects Of The Top Five Macroeconomic Factors, Nov. 4, 2011
American Express Credit Account Secured Note Trust 2012-5
Class Rating Amount (mil. $)
1 AA (sf) 44.643
2 NR 28.572