DBRS Assigns Provisional Ratings to Algonquin Credit Card Trust, Series 2007-1

DBRS has today assigned provisional ratings to the Series 2007-1, Class A Notes, Class B Notes and Class C Notes (the Notes) to be issued by Algonquin Credit Card Trust (the Trust).

Finalization of ratings is contingent upon receipt of final documents conforming to information already received.

The provisional ratings are based on the following factors:
(1) There are high levels of credit enhancement provided by the excess spread (estimated to be about 9% after including interchange and subtracting the cost of funds and credit losses) and subordination for AAA and “A” Notes at 20.5% and 10.5%, respectively;
(2) The Trust Portfolio has a diverse client base across Canada;
(3) Capital One Bank is a diversified financial services company with large, international credit card operations.

The Trust Portfolio has had revenue yields (including interchange) between 18.80% and 19.70%, and loss rates between 4.45% and 6.05% since 2004. Over the same period, the average monthly payment rates varied between 10.15% and 10.75%. Generally, the payment rate is lower than other credit card programs in Canada. Credit enhancement levels have been sized accordingly to reflect its performance.

Capital One Bank (Canada Branch) has been issuing credit cards in Canada since late 1996 and currently has outstanding receivables in excess of $3.1 billion. Capital One Bank is a subsidiary of Capital One Financial Corporation, a diversified consumer financial services company in the United States with US$51.9 billion managed credit card assets measured by aggregate outstanding balance as of March 31, 2007.

Note:
All figures are in Canadian dollars unless otherwise noted.