S&P Puts Rtgs on 2 First Consumers Deals on Watch Neg NEW YORK, Mar 28, 2002 (BUSINESS WIRE) -- Standard & Poor's today placed its ratings on various classes of First Consumers Master Trust series 1999-A and First Consumers Credit Card Master Note Trust series 2001-A on CreditWatch with negative implications (see list). These CreditWatch placements reflect the adverse performance trends displayed by the underlying pools of credit card receivables in conjunction with concerns regarding the impact that a recent announcement from The Spiegel Group may have on the servicing of the receivables. The Spiegel Group announced its plans to sell its credit card business, including its First Consumers National Bank (FCNB) subsidiary on Feb. 21, 2002. According to The Spiegel Group, the planned sale is a part of the company's broader strategy to focus increased resources on its retail business and strengthen its financial position. FCNB is the seller/servicer in both of the transactions. During the past two years, the underlying pool of credit card receivables has displayed deteriorating and volatile performance trends, including decreasing yield and payment rates and increasing delinquency and charge-off rates. As of the February 2002 reporting period, the total delinquency rate was at 14.29%, which is 572 basis points higher than January 2000's delinquency rate of 8.57%. Concurrently, the gross charge-off rate has increased to its current level of 18.20%, up from 11.90% in January 2000. At the same time, the yield on the portfolio has declined steadily during the same time period, averaging approximately 30% during the past year. This decreasing yield, combined with a relatively static base rate and an increasing charge-off rate, has negatively affected spread rates, causing it to fall dramatically from its high of 20.60% in July 1999 to its current rate of 5.17% in February 2002. Lastly, the total payment rate displayed by the master trust has also displayed dissipating trends, falling steadily to its current rate of 11.07% from 17.92% in March 1999. The payment rate is a key risk indicator because it reflects the length of time that certificateholders are subjected to the credit risk of a deteriorating pool of assets. Standard & Poor's will continue to monitor the performance of the aforementioned transactions and the resolution of the sale of the FCNB credit card business. RATINGS PLACED ON CREDITWATCH NEGATIVE First Consumers Master Trust Series 1999-A Rating Class To From A AAA/Watch Neg AAA B A/Watch Neg A First Consumers Credit Card Master Note Trust Series 2001-A Rating Class To From A AAA/Watch Neg AAA B A/Watch Neg A C BBB/Watch Neg BBB Copyright 2002, Standard & Poor's Ratings Services CONTACT: Standard & Poor's, New York Kelly Luo, 212/438-2535 Patrick Coyne, 212/438-2435 Bonnie Lee Tillen, 212/438-2624 URL: http://www.businesswire.com Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. Copyright (C) 2002 Business Wire. All rights reserved. -0- KEYWORD: NEW YORK INDUSTRY KEYWORD: BOND/STOCK RATINGS SOURCE: Standard & Poor's Copyright 2002 Business Wire. All rights reserved. 03/28/2002 09:26 BW SPIEGEL CL'A' NAS:SPGLA Updated: 15:59 ET 1.37 -0.31
I've been away from the board for awhile. I did see a couple of posts that FCNB was looking for a buyer. I'm wondering what this will do to my FCNB and Spiegel accounts. Anybody have a clue?
