Fitch Rates Fleet Credit Card MT II Series 2002-B 'AAA/A'

Business Wire, Oct 31, 2002

Business Editors

NEW YORK--(BUSINESS WIRE)--Oct. 31, 2002

Fleet Credit Card Master Trust II's $618.7 million class A floating-rate asset-backed certificates and $52.5 million class B floating-rate asset-backed certificates are rated 'AAA' and 'A', respectively, by Fitch Ratings. The ratings are based on the quality of the receivables pool, available credit enhancement, servicing provided by Fleet Bank (RI), N.A., and the transaction's sound legal and cash flow structures. The certificates are backed by a pool of MasterCard and Visa receivables generated under the original Advanta National Bank platform (Fleet A portfolio), original Fleet platform (Fleet B portfolio), the acquired portfolios of Crestar Bank and Household, and originations under the new entity Fleet Bank (RI) N.A.

Credit enhancement for series 2002-B totals 17.5% for the class A certificates and 10.5% for class B certificates. Class A credit enhancement is comprised of 7% subordination of the class B certificates and 10.5% subordination of the collateral interest. Class B credit enhancement is derived from 10.5% subordination of the collateral interest. The collateral interest represents an undivided interest in the trust, which is subordinate in payment rights to class A and class B.

Fitch applied several economic and credit stress scenarios to the receivable portfolio in order to determine appropriate credit enhancement for the above noted rating categories. The scenarios simultaneously stress yield, chargeoff, and monthly payment rate steady state assumptions. In addition, to address the interest rate risk associated with uncapped floating-rate coupons, the coupon is stressed to worst case London Interbank Offered Rate (LIBOR) levels without a 1:1 adjustment to yield.

Each series is structured with a revolving period followed by a variable accumulation period. Class A and B certificate investors will receive interest of 0.14% and 0.44%, plus the one-month (LIBOR), respectively. Interest for class A and class B will be paid on the 15th of each month commencing on Dec. 16, 2002 and continue throughout the revolving and accumulation periods and on the expected maturity date, provided an early payout event does not occur. Following the variable accumulation period, principal is expected to be paid to class A and B certificateholders on the October 2007 distribution date. The legal final maturity date for series 2002-B is April 15, 2010. As part of Group One, series 2002-B will share excess principal and finance charge collections with other series in Group One.

For a full report on Fleet CCMT II, series 2002-B and surveillance information, please refer to the Fitch Ratings web site at 'www.fitchratings.com'.