SAN FRANCISCO, May 23 /PRNewswire-FirstCall/ -- In response to the ratings
downgrade by Fitch Ratings on May 23, 2002, Providian Financial Corporation
(NYSE: PVN) stated that it continues to expect that excess spread in its
Providian Gateway Master Trust will not fall to a level that would trigger
early amortization of the outstanding securitizations of the trust.
Additionally, the Company noted that the Fitch downgrade does not result in an
early amortization event in any existing securitization.
As previously disclosed by the Company in its Annual Report on Form 10-K
for the year ended December 31, 2001 and in its Quarterly Report on Form 10-Q
for the quarter ended March 31, 2002, early amortization for two specific
series of its Providian Gateway Master Trust will occur if there is a
downgrade of Providian National Bank's credit ratings below BB-/Ba3,
respectively, unless Providian National Bank has entered into a back-up
servicing agreement with a back-up servicer satisfactory to the investors
within 60 days of the downgrade. This ratings trigger is not tied to ratings
by Fitch, but is based only on the ratings provided by Moody's Investor
Service and Standard & Poor's.
About Providian
San Francisco-based Providian Financial is a leading provider of credit
cards and deposit products to customers throughout the U.S. By combining
knowledge, analysis and technology, Providian builds long-lasting
relationships with its customers through products and services to meet their
evolving financial needs. One of America's largest bankcard issuers,
Providian has more than $22 billion in managed receivables and over 15 million
customer relationships.
Forward-looking statement disclaimer:
This release contains forward-looking statements as to the Company's
expectations, intentions and goals that are subject to the "safe harbor"
provisions created by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include expressions of "belief," "expectations,"
"intentions" and other words of similar import, statements as to industry and
economic trends and future results of the Company, and other statements that
are not historical facts. Such forward-looking statements are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. Among the
significant risks and uncertainties are: competitive pressures; factors that
affect delinquency rates, credit loss rates and charge-off rates; general
economic conditions; consumer loan portfolio growth; changes in the cost
and/or availability of funding due to changes in the deposit, credit or
securitization markets; changes in the way in which the Company is perceived
in such markets and/or conditions relating to existing or future financing
commitments; the effects of government policy and regulation, whether of
general application or specific to the Company, including restrictions and/or
limitations relating to the Company's minimum capital requirements, deposit
taking abilities, growth, reserving methodologies, dividend policies and
payments, growth, and/or underwriting criteria; changes in accounting rules,
policies, practices and procedures; product development; legal and regulatory
proceedings, including the impact of ongoing litigation; interest rates;
acquisitions; one-time charges; extraordinary items; the ability to attract
and retain key personnel; the impact of existing, modified or new strategic
initiatives; and international factors. Readers are cautioned not to place
undue reliance on forward-looking statements, which speak only as of the date
thereof. The Company undertakes no obligation to update any forward-looking
statements. More information on risks and uncertainties relating to the
Company are available in the Company's filings with the Securities and
Exchange Commission, including its annual report on Form 10-K, quarterly
reports on Form 10-Q, and current reports on Form 8-K.
SOURCE Providian Financial Corporation
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Related links:
http://www.providian.com
CONTACT:
media, Alan Elias, +1-415-278-4189, or
investors, Jack Carsky, +1-415-278-4977, both of Providian
Financial Corporation
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