KBRA Assigns Preliminary Ratings to Fair Square Issuance Trust, Series 2020-A

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of Fair Square Issuance Trust, Series 2020-A (“Series 2020-A”), a credit card asset-backed securities transaction.

The collateral in the Series 2020-A deal includes $318 million of credit card receivables principal balance, as of the November 30, 2019 statistical cutoff date. The Notes are backed by a pool of near prime and subprime general-purpose credit card accounts under the MasterCard brand.

The transaction has a two-year revolving period where no principal payments will be made on the notes during this time unless an Early Amortization Event occurs. During the amortization period, no new accounts will be added, and available funds can be used to purchase new receivables from existing accounts, pay fees and interest and pay principal on the notes sequentially.

Fair Square Financial LLC, (“FSF” or the “Company”) is a privately held consumer finance company established in 2016. FSF has partnered with The Bank of Missouri (“TBOM) to originate general-purpose credit cards under the MasterCard brand, and with CardWorks Servicing, LLC (“CardWorks”) to service its credit card accounts. The Company was founded and is managed by credit card industry veterans from leading credit card issuing banks. FSF is directly or indirectly owned by Pine Brook Card Intermediate, L.P., Orogen FSF LLC. and individual investors. In addition to $300 million committed equity funding, the Company has a $600 million collateralized credit facility. As of September 30, 2019, FSF had total assets of $490 million and total stockholder’s equity of $92 million.

The ratings reflect the initial credit enhancement levels ranging from 39.50% for the Class A notes to 0.00% for the Class D notes. Credit enhancement on the notes consists of i) subordination (except for the class D notes) ii) excess spread generated by the pool of credit card receivables and iii) a reserve account (if funded after the closing date).

KBRA analyzed the transaction using the Global Credit Card ABS Rating Methodology published on November 28, 2017 and the Global Structured Finance Counterparty Methodology published on August 8, 2018. KBRA’s credit card methodology incorporates an analysis of: (1) the quality and expected performance of the underlying collateral, (2) the originator’s and servicer’s business model and operational capabilities and (3) the transaction terms, including capital structure, credit enhancement and legal structure.

To access ratings, reports and disclosures, click here.

Ratings: Fair Square Issuance Trust, Series 2020-A



Principal Balance


A (sf)



BBB (sf)



BB (sf)



B (sf)


Related Publications: (available at www.kbra.com)



About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.


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