Banc One Corp. said it has been meeting with Moody's Investors Service, Standard & Poor's, and three banks that offer credit enhancement to consider actions to avert an early payout or rating downgrading for securities issued by its master trust.

Last month, Moody's placed on review for possible downgrading $2.66 billion of asset-backed securities as a result of increasing chargeoffs in the master trust.

In a press release, Banc One said it "is fully committed to continued use of credit card securitizations as a funding strategy and the credit card business," noting its recent agreement to buy First USA Inc.

The trust's latest servicing report said that chargeoffs in the securitized portfolio of credit card receivables fell 35 basis points, to 8.99%, in January.

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