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Moody's Investors Service Inc.

Moody's Confirms Aa3 Rating on Card Series Class B (2005-3) Notes Issued by Capital One Multi-asset Execution Trust

Strategic Insights

— 2 min read

Moody's Investors Service has confirmed its Aa3 (sf) rating on the Card Series Class B (2005-3) Notes issued by Capital One Multi-asset Execution Trust (COMET), sponsored by Capital One, N.A. This rating action is based on the long-term ratings and assessments of Capital One, N.A., including its long-term counterparty risk assessment (CR Assessment). The revolving structure used in credit card securitizations means the bank sponsor plays an ongoing role in underwriting and originating new accounts for the securitization trust.

Capital One, N.A. uses a revolving structure for its credit card securitizations, where the bank sponsor continues to originate new accounts and underwrite credit card receivables for the securitization trust. Moody's incorporates the effects of a sponsor default into its rating methodology for credit card receivables-backed securitizations. The rating approach for these transactions includes analyzing the collateral performance and cash flows to determine the credit enhancement level consistent with a Aaa rating, given a sponsor default, and determining the level of credit enhancement required to support the scheduled rating based on the sponsor's CR Assessment.

The assets of COMET consist of a collateral certificate representing an undivided interest in credit card receivables owned and serviced by Capital One, N.A. In May 2025, Moody's confirmed its ratings on Capital One Financial Corporation and the sponsor's ratings following the merger with Discover Financial Services.

Key Takeaways:

  • Moody's has confirmed its Aa3 (sf) rating on the Card Series Class B (2005-3) Notes issued by Capital One Multi-asset Execution Trust (COMET), sponsored by Capital One, N.A.
  • The rating is based on the long-term ratings and assessments of Capital One, N.A., including its long-term counterparty risk assessment (CR Assessment).
  • The bank sponsor's ongoing role in underwriting and originating new accounts for the securitization trust is a key factor in the rating.
  • The revolving structure used in credit card securitizations includes analyzing the collateral performance and cash flows to determine the credit enhancement level consistent with a Aaa rating, given a sponsor default.
  • The credit enhancement available to the Class B (2005-3) Notes is commensurate with the confirmed Aa3 (sf) rating.
  • Moody's confirmed its ratings on Capital One Financial Corporation and the sponsor's ratings following the merger with Discover Financial Services in May 2025.
  • The rating on Capital One, N.A. includes its long-term deposit rating, long-term senior unsecured rating A3, and long-term CR assessment A2(cr).
  • The principal methodology used in this rating was "Credit Card Receivables Securitizations" published in June 2024.

Statistics:

  • The Aa3 (sf) rating on the Card Series Class B (2005-3) Notes was confirmed by Moody's.
  • The rating is based on the long-term ratings and assessments of Capital One, N.A., including its long-term counterparty risk assessment (CR Assessment).
  • The credit enhancement available to the Class B (2005-3) Notes is $100,000,000.
  • The assets of COMET consist of a collateral certificate representing an undivided interest in credit card receivables owned and serviced by Capital One, N.A.

Sources:

  • Moody's Investors Service press release, dated February 27, 2024
  • Moody's Investors Service press release, dated May 19, 2025
  • "Credit Card Receivables Securitizations" methodology, published in June 2024, available at https://ratings.moodys.com/rmc-documents/423538.

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