Kroll Bond Rating Agency UK Limited (KBRA) assigns a rating to the Series 2021-1 Class A Notes relating to the Oban Card 2021-1 PLC transaction, a £451.3 million securitisation of United Kingdom ("UK") non-prime credit card receivables originated by Vanquis Bank Limited ("Vanquis Bank").
Vanquis Bank offers a range of credit card products, unsecured personal loans and savings products. Vanquis Bank is a leading issuer of credit cards in the UK non-standard credit market, offering credit cards to customers who have typically been declined by mainstream credit card providers. Vanquis Bank has been active in the credit card market in the UK since 2003 and is wholly-owned by Provident Financial PLC ("Provident"), which was established in 1880.
This transaction, Oban Cards 2021-1 plc, Series 2021-1, represents the Company's first term ABS. As of 30 September 2020, the initial portfolio had a weighted average APR of 34.5%, an average balance of £1,041 (excluding zero balance accounts), average credit line of £2,469 and average utilization rate of 54.5%. Additionally, the loan pool is geographically diverse within the United Kingdom with the largest region (London) accounting for only 13.0% of the total portfolio based on current balance. The Vanquis Card represented 59.7% of the pool balance, Chrome Card 31.2%, Argos 4.8% and Aquis 4.3%.
The Series 2021-1 transaction will issue two classes of notes in an aggregate principal amount of £453.1 million. Credit enhancement on the Class A notes consists of i) subordination and ii) excess spread generated by the pool of credit card receivables. The transaction has a liquidity reserve of £10.03 million (4.3% of Class A balance) at inception and includes a minimum transferor interest of 0.75%.
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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.
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This credit rating is endorsed by Kroll Bond Rating Agency Europe Limited for use in the European Union. Information on a credit rating's endorsement status is available on its rating page at KBRA.com.
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About KBRA UK
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. Kroll Bond Rating Agency UK is located at Augustine House, Austin Friars, London, EC2N 2HA, United Kingdom.
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