Oban Cards master trust secures KBRA ratings for 2026 notes, 2021 class A affirmed

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Oban Cards 2026 KBRA ratings

Highlights

KBRA assigns ratings to five classes of notes for Oban master trust's Series 2026-1, backed by Vanquis Bank Limited credit card receivables.
KBRA affirms its rating on Class A notes issued by Oban Cards 2021-1 plc, maintaining confidence in the existing 2021 issuance.
Vanquis Bank's credit card receivables balance reached approximately £1.5 billion at 2025 year-end, supporting UK consumer ABS market activity.

2026 issuance structure and rating action

As reported by Kroll Bond Rating Agency, KBRA assigns ratings to five classes of notes to be issued under the Oban master trust structure, a UK credit card ABS programme backed by receivables originated and serviced by Vanquis Bank Limited. The rating agency also affirms its rating on the Class A notes issued by Oban Cards 2021-1 plc under Series 2021-1.

The new issuance relates to Series 2026-1 and is to be issued by Oban Cards 2026-1 plc. Credit enhancement for the rated notes consists primarily of subordination of junior note classes, excess spread generated by the receivables and a liquidity reserve.

The transaction includes a minimum transferor interest of 0.75%, which provides structural protection against dilution risk. It also includes a revolving period of up to three years, which may be extended by up to 12 months in line with the transaction documents.

Vanquis credit card exposure and UK ABS context

Vanquis Bank Limited operates as a UK specialist bank focused on consumer lending in the United Kingdom. Its product portfolio includes credit cards, vehicle finance, second charge mortgages and retail deposit products.

Credit cards remain the bank's largest business line by receivables balance, with gross customer interest-earning balances of about 1.5 billion pounds at year-end 2025. That asset base underpins the receivables backing the Oban programme and highlights the continued role of credit card ABS funding in the UK consumer finance market.

In our earlier coverage of KBRA’s rating affirmation for Valley National Bancorp and Valley National Bank, we noted that the agency kept the group’s key long-term and short-term ratings unchanged with a Stable outlook. The review pointed to improving asset quality, a sharp decline in commercial real estate concentration, stronger earnings, and better funding and capital metrics supported by solid core deposit growth and an equity raise.

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