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Business Services Industry

Fitch Upgrades Providian National Bank Credit Card Seller/Servicer Rating

Business Wire, Oct 10, 2005

NEW YORK -- Fitch has upgraded the credit card seller/servicer rating of Providian National Bank (PNB) to 'ABPS/S 3+' from 'ABPS/S 3'. This action results from PNB's improved financial profile following the completion of Washington Mutual Inc.'s (WM) ('A/F1'; Stable Outlook) acquisition of Providian Financial Corp (PVN), the parent of PNB. On Oct. 3, Fitch Ratings upgraded the senior debt rating of PNB to 'A' from 'BB-, in order to align its ratings with those of WM. WM has retained a significant portion of the current PVN management team to run its credit card business, which will provide stability. Structurally, PNB has been merged into Washington Mutual Bank, while PVN has been merged into New American Capital, Inc., a subsidiary of Washington Mutual, Inc.

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As of December 2004, PNB managed a credit card portfolio of $18.5 billion, making it the ninth largest issuer of consumer credit cards in the U.S. PNB targets 'mainstream America' i.e. middle-class consumers. Since 1999, the bank has issued a total of 20 asset-backed security (ABS) credit card series under its Fitch-rated Providian Gateway Master Trust program with a total invested amount of $14.2 billion. As of Aug. 31, 2005, PNB had 17 ABS credit card series outstanding from the Providian Master Note Trust and the Providian Gateway Master/Owner Trusts, representing a total invested amount of $11 billion.

Fitch rates ABS seller/servicers on a scale of 1 to 5, with 1 (no '1+') being the highest rating. Within each of these rating levels, Fitch further differentiates ratings by plus (+) and minus (-) as well as the flat rating. For further information about Fitch ABS seller/servicer ratings, refer to the report titled 'ABS seller/servicer rating: Credit Where Credit Is Due,' dated Sept. 14, 2004 and 'ABS seller/servicer rating: Credit Card Addendum,' dated Dec. 4, 2004, available on the Fitch Ratings web site at www.fitchratings.com.

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.

Business Services Industry

Fitch Upgrades Providian National Bank Credit Card Seller/Servicer Rating

Business Wire, Oct 10, 2005

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