KBRA assigns preliminary ratings to four classes of notes issued by Mercury Financial Credit Card Master Trust, Series 2023-1 (“MFCCMT 2023-1”), a credit card asset-backed securitization issued out of the Mercury Financial Credit Card Master Trust (“Master Trust”).

The notes of MFCCMT 2023-1 are collateralized and repaid by a portfolio of revolving general-purpose credit card accounts in the Master Trust (“Trust Portfolio”) for which the Series 2023-1 Notes are allocated a percentage interest in the Trust Portfolio. The accounts were originated through the Mercury Financial Program and the Legacy Accounts acquired from a Delaware banking corporation. MFCCMT 2023-1 will include a 24-month revolving period where no principal payments will be made on the notes unless an Early Amortization Event occurs. Receivables in the Trust Portfolio are generated by accounts owned by First Bank & Trust. Wilmington Trust, National Association will be the backup servicer.

MFCCMT 2023-1, represents the Company’s eighth securitization issued from the Master Trust. Previous series are MFCCMT Series 2021-1, MFCCMT Series 2022-1, MFCCMT Series 2022-2, MFCCMT Series 2022-3, MFCCMT Series 2021-VFN1, MFCCMT Series 2021-VFN2 and MFCCMT Series 2022-VFN1. The Company has also previously issued four private securitizations issued from discrete trusts that have subsequently been repaid.

KBRA applied its Global Credit Card ABS Rating Methodology as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the transaction’s underlying collateral pool and the proposed capital structure. KBRA considered its operational review of Mercury Financial as well as periodic update calls with the Company. Operative agreements and legal opinions for the transaction will be reviewed prior to closing.

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Related Publications

• Credit Card ABS Global Rating Methodology
• Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority pursuant to the Temporary Registration Regime. 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.

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