KBRA Assigns Preliminary Ratings to Continental Finance Credit Card ABS Master Trust, Series 2022-A

KBRA assigns preliminary ratings to four classes of notes issued by Continental Finance Credit Card ABS Master Trust, Series 2022-A (“CFCCMT Series 2022-A”), a credit card asset-backed securitization.

CFCCMT Series 2022-A, represents Continental Finance Company’s (“CFC”) sixth term ABS and fifth master trust issuance. The Notes are collateralized and repaid by a portfolio of revolving general-purpose credit card accounts. CFCCMT Series 2022-A will include a three-year revolving period where no principal payments will be made on the notes unless an Early Amortization Event occurs.

The transaction has initial credit enhancement levels ranging from 44.50% for the Class A notes to 10.00% for the Class D notes. Credit enhancement is comprised of overcollateralization, subordination of junior note classes, the reserve account (if funded after closing), and excess spread. The reserve account is initially 0% and the target is 1.00% of the current aggregate receivables amount.

CFC is a privately held consumer finance company established in 2005 that provides services to support their general-purpose credit cards program under the Mastercard brand. These services include marketing, underwriting and servicing credit card accounts. CFC has provided these services since March 2006, however, the CFC achieved meaningful scale starting in 2016. CFC is owned directly or indirectly by its founders.

KBRA applied its Global Credit Card ABS Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the portfolio pool data, underlying collateral pool and capital structure. KBRA considered its operational reviews of CFC, as well as periodic update calls with CFC. Operative agreements and legal opinions will be reviewed prior to closing.

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Related Publications

• Credit Card ABS Global Rating Methodology
• Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority pursuant to the Temporary Registration Regime. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

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