OREANDA-NEWS. Fitch Ratings has assigned the following ratings to Evergreen Credit Card Trust, series 2016-2:

--$500,000,000 USD class A asset-backed notes 'AAAsf'; Outlook Stable;

--$27,840,000 CAD class B asset-backed notes 'Asf'; Outlook Stable;

--$17,400,000 CAD class C asset-backed notes 'BBBsf'; Outlook Stable.

KEY RATING DRIVERS

High Collateral Quality: The underlying collateral characteristics play a vital role in the performance of a credit card ABS transaction. Fitch closely examines such collateral characteristics as credit quality, seasoning, geographic concentration, delinquencies and utilization rate on the cards.

Strong Collateral Performance Metrics: As of April 2016, The Toronto-Dominion Bank's (TD) collateral performance metrics compared favorably to Fitch indices. Chargeoffs and 60+ days' delinquencies of the trust portfolio have been strong historically, and the monthly payment rate (MPR) has generally remained consistent and gross yield has been robust over the past several years.

Adequate Credit Enhancement: Credit enhancement (CE) supporting the class A notes is derived from the 4.00% subordination of the class B notes, 2.50% subordination of the class C notes and excess spread. The class B notes are supported by 2.50% subordination of the class C notes and excess spread. The class C notes are supported by excess spread and a cash reserve account to be funded by the trust when excess spread falls to or below 4.0%. The cash reserve account will not be funded at closing.

Quality Servicing Capabilities: TD is an effective servicer, as evidenced by historical delinquency and loss performance of securitized receivables. Any deterioration that could occur in the credit quality of TD may affect the performance of the series 2016-2 notes.

RATING SENSITIVITIES

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.

The harshest stress scenario of a combined 75% increase to defaults and a 35% reduction of MPR could lead to the most drastic downgrades to all classes. Under a moderate stress of a 50% increase in defaults and 25% reduction in MPR, rating migration could be less impacted. However, increasing defaults by 75% and reducing purchase rate by 100% alone in comparison will have the least impact on rating migration.

For a discussion of the representations, warranties, and enforcement mechanisms available to investors in this transaction please see the related presale appendix.