KBRA UK Assigns Preliminary Ratings to Oban Cards 2026-1 Credit Card ABS

Kroll Bond Rating Agency UK (KBRA UK) has assigned preliminary ratings to five classes of notes to be issued under the Oban master trust structure. The issuance, designated as Series 2026-1, will be issued by Oban Cards 2026-1 plc as part of a United Kingdom credit card asset-backed securities (ABS) programme.

The receivables backing the issuance are originated and serviced by Vanquis Bank Limited, which acts as the servicer and the company in this transaction. Vanquis Bank is a UK specialist bank that provides a range of consumer lending products, including vehicle finance, second charge mortgages, and credit cards, alongside retail deposit products.

Credit cards represent the largest business line for Vanquis Bank by receivables balance. As of year-end 2025, the bank reported gross customer interest-earning balances of approximately £1.5 billion within its credit card portfolio.

The structural integrity of the rated notes is supported by several layers of credit enhancement. These include the subordination of junior note classes, a liquidity reserve, and excess spread generated by the underlying receivables. The transaction incorporates a minimum transferor interest of 0.75% to provide structural protection against dilution risk.

The Series 2026-1 issuance includes a revolving period that lasts up to three years. Under the terms of the transaction documents, this revolving period may be extended by an additional 12 months.

During this revolving period, principal collections are generally used to purchase additional eligible receivables. However, no principal payments will be made on the notes during this time unless a series pay-out event occurs.

Once the revolving period concludes, the transaction will transition into a controlled accumulation period. During this phase, principal collections will be retained specifically to fund the repayment of the notes.

The ratings were determined using the ABS: Credit Card ABS Global Rating Methodology and the Structured Finance: Global Structured Finance Counterparty Methodology. KBRA UK noted that further details regarding sensitivity analyses, factors that could lead to rating upgrades or downgrades, and relevant ESG factors are contained within the full rating report.

KBRA, LLC is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Ratings Organization (NRSRO). Its European and UK arms, Kroll Bond Rating Agency Europe Limited and Kroll Bond Rating Agency UK Limited, are registered as credit rating agencies with the European Securities and Markets Authority and the UK Financial Conduct Authority, respectively.

The agency is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is designated as a Designated Rating Organization by the Ontario Securities Commission for asset-backed securities issuers filing a shelf or short form prospectus.