Continental Finance Company is preparing to sponsor a $210 million credit card securitization deal, secured by a pool of credit card accounts extended to clients with non-prime credit scores and so-called thin credit files.

The transaction, Continental Finance Credit Card ABS Master Trust, Series 2022-A, is the company’s sixth term asset-backed securities (ABS) deal, and the fifth from the master trust. A portfolio of revolving general-purpose credit card accounts will collateralize the deal, called the CFCCMT, Series 2022-A, according to Kroll Bond Rating Agency.

The Bank of Missouri and Celtic Bank Corporation originated the accounts, which operate under the Mastercard brand. More than one million accounts are in the transaction, which have an average balance of $648, and an interest rate of 27.9%.

On a weighted average (WA) basis, the collateral is aged 19 months, and has a non-zero WA Vantage Score of 600. As of June 30, credit card accounts in the CFCC Master Trust have a non-zero WA Vantage Score of 600, which is actually lower than the Vantage Score of 602 among accounts at the Continental Finance company level. KBRA also noted that the accounts have an annual income of $52,372, on a WA basis.

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This article was originally published on Asset Securitization Report Online on September 9, 2022.