OREANDA-NEWS. Fitch Ratings has assigned Master Credit Cards PASS Compartment France Note Series 2015-1 final rating as follows

EUR400m Class A notes: 'AAAsf'; Outlook Stable
EUR118.6m Class B notes: not rated

Fitch also affirmed the outstanding EUR110m Series 2014-1 class A notes at 'AAAsf' with Stable Outlook.

The proceeds of the Series 2015-1 are being used to repay the existing Series 2013-1.

The notes are collateralised by a pool of French credit card receivables originated by Carrefour Banque (CB). The receivables portfolio consists of drawings made by individuals under revolving credit agreements originated in France and are mainly associated with credit cards using the MasterCard networks.

KEY RATING DRIVERS

Firm Asset Performance
Fitch has set the base case charge-off expectations at 8%, which is at the median of the range (4.5% to 10%) assigned in similar transactions, unchanged since the issue of the series 2014-1 notes in October 2014. The agency's base case assumption for the yield rate has also remained unchanged (15%), while the monthly payment rate has been revised down to 5.75% from 6%.

French Revolving Credit Specifics
Unlike UK credit cards, only drawings using the credit line are securitised (in particular, deferred payments at the end of the month are not securitised as long as they are paid on time). In addition, French consumer law imposes strict amortisation rules on revolving credits (eg a minimum scheduled amortisation). The overall lower payment rates of this product will result in a slower amortisation profile compared with credit card trusts in the UK.

Seller Share Subordination
The seller share (class S notes) becomes subordinated to the class A and B notes in the accelerated amortisation period. The seller share does not cover set-off, commingling, dilution and fraud risks during the programme's revolving period.

Ability to Issue Additional Notes
The transaction is structured as a programme in which additional series of class A and class B notes, and class S notes (representing the seller's interest), can be issued to purchase additional receivables up to the maximum programme size (EUR1bn). All notes of the same class rank pari passu among themselves irrespective of their series (same terms and conditions). However, each note series is subject to final terms with specific interest rates, expected maturity or final maturity.

Servicing Continuity Risk Mitigated
CB is the servicer. No back-up servicer was appointed at closing of the transaction. However, servicing continuity risks are mitigated by operational elements such as, among other things, monthly transfer of borrowers' details, a commingling reserve and a reserve fund to provide liquidity support. Furthermore, several factors mitigate commingling risk (including the use of a specially dedicated collection account and the availability of a commingling reserve), while an adequately sized reserve fund (the general reserve) is available for liquidity.

Asset Outlook
Fitch has a stable asset outlook for French consumer ABS assets. The agency forecasts French economic activity to remain weak over the next two years, with high unemployment, but believes defaults are likely to remain within base-case expectations, as they are already incorporated into our macroeconomic forecasts.

RATING SENSITIVITIES

Rating sensitivity to increased charge-off rate
Current rating (base case: 8%): 'AAAsf'
Increase base case by 25%: 'AA+sf'
Increase base case by 50%: 'AAsf'

Rating sensitivity to reduced recovery rate
Current rating (base case: 33%): 'AAAsf'
Reduce base case by 25%: 'AAAsf'
Reduce base case by 50%: 'AAAsf'

Rating sensitivity to increased charge-off rate and reduced recovery rate
Current rating: 'AAAsf'
Increase charge-off rate by 25% and reduce recovery rate by 25%: 'AA+sf'
Increase charge-off rate by 50% and reduce recovery rate by 50%: 'AA-sf'

DUE DILIGENCE USAGE

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

DATA ADEQUACY

Fitch reviewed the results of a third party assessment conducted on the asset portfolio information, which indicated no adverse findings material to the rating analysis.

Fitch conducted a review of a small targeted sample of CB's origination files when the Series 2014-1 was issued and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio.

Overall, Fitch's assessment of the asset pool information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable.

SOURCES OF INFORMATION

The information below was used in the analysis.
-Historical performance data (delinquencies, defaulted amount, finance charge collections, new advances, frauds, dilution, recoveries) provided by CB from 2005 to 2014
-Transaction reporting provided by EuroTitrisation at end-April 2015

REPRESENTATIONS AND WARRANTIES

A comparison of the transaction's Representations, Warranties & Enforcement Mechanisms to those typical for the asset class is available by accessing the appendix that accompanies the initial new issue report (see Master credit Cards Pass Compartment France - Note Series 2015-1 - Appendix, dated 25 June 2015 at www.fitchratings.com). In addition refer to the special report "Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions" dated 12 June 2015 available on the Fitch website.