OREANDA-NEWS. Fitch Ratings has affirmed the ratings assigned to CARDS II Trust (the Trust). The Rating Outlook remains Stable. A detailed list of rating actions follows at the end of this release:

KEY RATING DRIVERS
The affirmations are based on continued stable trust performance. The current 12-month average gross yield is 22.68% as of the October 2015 reporting period, slightly higher than the 12-month average of 22.22% as of the October 2014 reporting period.

Monthly payment rate (MPR), a measure of how quickly consumers pay off their credit card debts, has remained relatively stable over the past year. The 12-month average is 37.38% as of the October 2015 reporting period, slightly higher than the 12-month average of 35.77% the previous year.

Net charge-offs have again experienced a decline over the past year. As of the October 2015 reporting period, the 12-month average is 3.12%, compared to the 12-month average of 3.48% as of the October 2014 reporting period. Twelve-month averages for 60+ day delinquencies also improved to 1.12% from 1.22% over the same period.

Fitch runs cash flow breakeven analysis by applying stress scenarios to three-, six-, and 12-month performance averages to evaluate the breakeven loss multiples at different rating levels given the available credit enhancement. The performance variables that Fitch stresses are the gross yield, MPR, gross charge-off, and purchase rates. As part of its ongoing surveillance efforts, Fitch will continue to monitor the performance of the Trust.

The affirmations are based on the performance of the Trust, which was in line with expectations. The Stable Outlook indicates that Fitch expects the ratings will remain stable for the next one-to-two years.

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 MPR.

Rating sensitivity to increasing defaults alone as well as reducing purchase rate alone both have the least impact on rating migration. The most severe scenarios of increasing defaults by 75% could lead to a possible downgrade on the class A notes. The harshest scenario assumes stresses to defaults and MPR to occur simultaneously. The ratings on the class A notes would be downgraded under the moderate stress of a 50% increase in defaults and 25% reduction in MPR. Ratings on class A would be further downgraded under the severe stress of a 75% increase in defaults and a 35% reduction in MPR. To date, the transactions have exhibited strong performance with all performance metrics within Fitch's initial expectations. For further discussion of sensitivity analysis, please see the new issue report related to one of the transactions listed below.

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

Fitch has affirmed the following ratings:

CARDS II Trust, Series 2013-1
--Class A asset-backed notes at 'AAAsf'; Outlook Stable;
--Class B asset-backed notes at 'BBBsf'; Outlook Stable.

CARDS II Trust, Series 2015-1
--Class A asset-backed notes at 'AAAsf'; Outlook Stable;
--Class B asset-backed notes at 'BBBsf'; Outlook Stable.

CARDS II Trust, Series 2015-2
--Class A asset-backed notes at 'AAAsf'; Outlook Stable;
--Class B asset-backed notes at 'BBBsf'; Outlook Stable.

CARDS II Trust, Series 2015-3
--Class A asset-backed notes at 'AAAsf'; Outlook Stable;
--Class B asset-backed notes at 'BBBsf'; Outlook Stable.