A spike in chargeoffs in a $400 million credit-card-backed security issue by Mercantile Bank has become a point of contention between the two leading debt rating agencies.

Moody's Investors Service placed the securities under review for a possible downgrade after chargeoffs in the Mercantile Credit Card Master Trust 1995-1 series doubled to more than 9% from March through October. It was the first major negative action by either agency on a credit-card- backed issue.

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