-- American Express Credit Account Secured Note Trust
2012-4'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 2012-4 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 2012-4's
$76.819 million class 1 floating rate 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 2012-4 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
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 2012-4
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
-- Our opinion of the quality and consistency of FSB's and
Centurion's account origination, underwriting, and account
-- Our expectation of the timely payment of interest and the
ultimate payment of principal by May 15, 2020, the legal final
maturity date, based on stressed cash flow modeling scenarios
using assumptions commensurate with the assigned 'AA- (sf)'
-- 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,
-- 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
RATING ASSIGNED American Express Credit Account Secured Note
Class Rating Amount (mil. $)
1 AA- (sf) 76.819
2 NR 59.091