...On Oct. ##, ####, Fitch Rating released a commenta ry regarding the impact of volatile LIBOR on the credit card ABS trusts. As discussed in the report, the jump in one-month LIBOR, combined with increasing chargeoffs and lower yields on cred it cards, is creating a situtation that will put U.S. credit card ABS transactions to the test ove r the next few months. While spread compression due to the LIBOR jump alone is not a cause fo r rating action, the com pounding effect of rising chargeoffs and higher funding costs could hasten ra ting actions going forward, particularly at the subordinate note level. ...
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