ABS: Maxed-out on credit cards

A determination to avoid a ratings downgrade drove issuance of subordinated UK credit card ABS from both BarclayCard and Capital One in late September. There is potential for similar rating agency pressure on the other bank issuers such as RBS and Morgan Stanley, but it is not clear that other borrowers would welcome public transactions.

The UK bank’s £111.8 million ($212.4 million) double-B rated Gracechurch Card Notes Series 2006-A printed at Libor plus 245 basis points in sterling and euros for a 2.1-year