Fitch Ratings assigned expected ratings to Latitude Australia Credit Card Loan Note Trust as issuer of the series 2025-1 notes, backed by a pool of consumer receivables, principally credit card receivables, originated by Latitude Group Holdings (ASX:LFS), according to a Friday release.

The notes will be issued by Perpetual Corporate Trust as trustee for Latitude Australia Credit Card Master Trust.

The master trust structure permits purchase of eligible receivables on a revolving basis, to be funded through occasional issuance of additional series of notes and features a linked-note issuance structure.

The portfolio performance is stable, with gross charge-offs averaging 5%, yield averaging 17.6%, and a monthly payment rate averaging 17% for the 12 months ended March. Latitude has demonstrated a substantial, consistent, and steady recovery history, and the ratings firm retained a recovery base case of 20%.

It assigned a long-term rating of AAA(EXP)sf to the class A of the issuance, of AA(EXP)sf to class B, A(EXP)sf to class C, BBB(EXP)sf to class D, and BB(EXP)sf to class E.

The stable outlook on the note ratings is supported by Australia's continued economic growth and tight labor market, the ratings firm added.