Fitch: Stable Rating Outlook and Positive Performance to Continue in 2014 for Credit Card ABS

NEW YORK--()--Fitch Ratings expects credit card ABS ratings to maintain the stability that has been the hallmark of the asset class over the past two decades through multiple downturns, including the most recent severe crisis. Credit card ABS structures are expected to remain well enhanced and are capable of withstanding considerable performance stresses.

Fitch believes delinquencies and chargeoffs, as measured by Fitch indices, have touched their troughs after reaching historical lows throughout 2013. Monthly payment rates (MPRs) increased substantially year over year, setting record highs along the way, reflective of the high credit-quality borrowers in the securitized pools. Excess spread, meanwhile, is expected to remain at or near historical highs given the low interest rate and chargeoff environment. Although the number of securitized receivables has been declining, collateral quality remains solid with high FICO score accounts and low utilization rates prevailing.

Fitch's special report '2014 Outlook: Credit Card Asset-Backed Securities' is available at 'www.fitchratings.com'.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Credit Card ABS Rating Criteria' (June 2013);

--'Global Structured Finance Rating Criteria' (May 2013).

Applicable Criteria and Related Research: 2014 Outlook: Credit Card Asset-Backed Securities (Delinquency and Loss Metrics Approach Troughs)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=726224

Global Credit Card ABS Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=709356

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

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Contacts

Fitch Ratings, Inc.
Lauren Tierney, +1-212-908-9168
Associate Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Steven Stubbs, +1-212-908-0676
Senior Director
or
Media Relations
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings, Inc.
Lauren Tierney, +1-212-908-9168
Associate Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Steven Stubbs, +1-212-908-0676
Senior Director
or
Media Relations
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com