Fitch Ratings Assigns Ratings to WF Card Issuance Trust Notes

Strategic Insights -

Fitch Ratings, a leading credit rating agency, has recently assigned ratings to WF Card Issuance Trust, a securitized pool of unsecured consumer revolving credit card accounts originated by Wells Fargo Bank, National Association (WFB). The trust's notes, specifically the WFCardSeries Class A(2025-1) notes, have been assigned a rating of 'AAAsf' with a Stable Outlook. The ratings reflect Fitch's analysis of the underlying collateral performance and characteristics, originator and servicer quality, counterparty risk, and interest rate risk.

Key Takeaways:

  • The WFCardSeries Class A(2025-1) notes are backed by a securitized pool of unsecured consumer revolving credit card accounts originated by Wells Fargo Bank, National Association (WFB).
  • As of the March 2025 collection period, the trust's collateral performance metrics, such as 60+ day delinquencies and gross charge-offs, increased to 1.06% and 3.39%, respectively.
  • Credit enhancement (CE) is adequate, with modeled loss multiples in line with the ratings.
  • Fitch considers WFB (AA-/F1+/Stable) to be an effective and capable originator and servicer, with historical delinquency and loss performance for the pool's receivables.
  • The Stable Outlook on the notes reflects Fitch's expectation that performance will remain supportive of these ratings.
  • The ratings are sensitive to changes in charge-off rates, MPR, purchase rates, and gross yields, with specific assumptions and haircuts outlined in the report.
  • Factors that could lead to negative rating action/downgrade include increased charge-off rates, reduced MPR, reduced purchase rates, and reduced gross yields.
  • Factors that could lead to positive rating action/upgrade are not considered, as the current rating levels are 'AAAsf'.

Statistics:

  • 60+ day delinquencies: 1.06% as of March 2025
  • Gross charge-offs: 3.39% as of March 2025
  • Monthly payment rate (MPR): 39.55% as of March 2025
  • Gross yield (net of reversal): 25.42% as of March 2025
  • Credit enhancement (CE): 20.00% for class A notes

Sources:

  • Fitch Ratings. (2024, March 20). Credit Card ABS Rating Criteria. Retrieved from [https://www.fitchratings.com/site/re/1019292](https://www.fitchratings.com/site/re/1019292)
  • Fitch Ratings. (2023, November 29). Structured Finance and Covered Bonds Counterparty Rating Criteria. Retrieved from [https://www.fitchratings.com/site/re/1017718](https://www.fitchratings.com/site/re/1017718)
  • WF Card Issuance Trust. (2025, March). Offering Document. Retrieved from [https://www.wfcardtrust.com/offering-document](https://www.wfcardtrust.com/offering-document)