OREANDA-NEWS. Fitch Ratings expects to assign the following ratings to World Financial Network Credit Card Master Note Trust's asset-backed notes, series 2016-A:

--$250,000,000 class A fixed-rate 'AAAsf'; Outlook Stable;

--$12,500,000 class M fixed-rate 'AAsf'; Outlook Stable;

--$15,833,000 class B fixed-rate 'A+sf'; Outlook Stable;

--$41,667,000 class C fixed-rate 'BBBsf'; Outlook Stable;

--$13,334,000 class D zero-rate 'NR'.

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 (measured by credit bureau scores), seasoning, geographic concentration, delinquencies and utilization rate on the cards.

Adequate Credit Enhancement: Credit enhancement (CE) supporting class A notes totals 25.00% and is derived from 3.75% subordination of class M notes, 4.75% subordination of class B notes, 12.50% subordination of class C notes and 4.00% subordination of class D notes. Class M notes have 21.25% total CE, obtained from 4.75% subordination of class B notes, 12.50% subordination of class C notes and 4.00% subordination of class D notes. Class B notes have 16.50% total subordination, as they are supported by 12.50% subordination of class C notes and 4.00% subordination of class D notes. Class C notes are supported by 4.00% subordination of class D notes.

Quality Servicing Capabilities: Day-to-day servicing will be provided by Comenity Bank. Comenity Servicing LLC will be the subservicer for the trust. A deterioration of Comenity Bank or Comenity Servicing LLC may affect the performance of series 2016-A.

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 purchase rate, and 3) a combination stress of higher defaults and lower monthly payment rate (MPR).

Increasing defaults alone has little impact on rating migration except in the most severe scenario of a 75% increase in defaults, which could result in downgrades. The rating sensitivity to a reduction in purchase rate is less pronounced, with no rating migration even in the severe scenario. The harshest scenario assumes increased defaults and reduced MPR simultaneously. All classes could be downgraded under the moderate stress of a 50% increase in defaults and 25% reduction in MPR.

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation to this rating action.