Fitch Rates Providian Master Note Trust ProvidianSeries 2005-1 Notes

Business Wire, August 12, 2005

NEW YORK -- The first issuance from the Providian Master Note Trust, the ProvidianSeries $643.6 million class 2005-A1 floating-rate notes, are rated 'AAA' by Fitch Ratings.

In addition, Fitch rates the corresponding notes as follows:

--$90.4 million class 2005-M1 'AA';

--$87.8 million class 2005-B1 'A';

--$93.1 million class 2005-C1 'BBB';

--$85.1 million class 2005-D1 'BB'.

The $63.838 million class E notes were not rated. The class E notes are unoffered and will be retained by Providian. class A and M noteholders will receive monthly interest payments of 1-month LIBOR (1mL) 0.06% and 1mL 0.17% per annum, respectively, and class B and C noteholders will receive monthly interest payments of 1mL 0.30% and 1mL 0.55% per annum respectively. The coupon on the class D notes is 1mL 1.72%; the class E notes have a 0% coupon. All noteholders will receive monthly interest payments paid on the 15th business day of each month or the next business day, commencing Sept. 15, 2005.

The ratings reflect the credit quality of the collateral certificate, which is based on the quality of the receivables that make up Providian Gateway Master Trust, available credit enhancement, the servicing expertise of Providian National Bank, and the transaction's legal and financial structures.

Credit enhancement for the 'AAA' rated class A notes is provided through subordination of classes M, B, C, D, and E totaling 39.50%. The 'AA' rated class M notes draw on the 31.0% subordination of classes B, C, D, and E notes as credit enhancement. The 'A' rated class B notes receive credit enhancement from 22.75% of classes C, D, and E notes. Class C notes are enhanced by 14.0% of subordinate class D and E notes; class D notes are enhanced by 6.00% of subordinate class E notes. Additionally, a spread account has been established for the benefit of all classes.

The ratings address the likelihood of investors receiving timely interest payments in accordance with the terms of the underlying documents and full repayment of principal by the Nov. 15, 2011 legal final termination date. They do not address the likelihood of principal repayment by the expected note payment date of July 15, 2008 for classes A, M, B, C, and D notes.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.