Fitch: US Consumer Data Supporting ABS Credit Card Metrics

NEW YORK--()--February's improvement in consumer-related data should keep ABS credit card metrics in record territory this month. The reduction in initial jobless claims to a three-month low could mean more cardholders will continue to pay off more of their credit card balances, according to Fitch Ratings.

We expect the impact to be more pronounced on the prime indices, and Fitch's prime chargeoff index is expected to decrease to its all-time low, while 60-plus day delinquencies should not change. An increase in prime gross yield and a decrease in the prime monthly payment rate (MPR) are expected; however, they should be in line with seasonal historical trends.

The impact on retail indices should be smaller. Retail chargeoffs are likely to increase from January and 60-plus day delinquencies are likely to be unchanged. Retail gross yield may climb to its record range. Retail MPR should decline slightly after reaching a record in January.

Fitch's credit card results will be available in early April.

The above article originally appeared as a post on the Fitch Wire credit market commentary page. The original article can be accessed at www.fitchratings.com. All opinions expressed are those of Fitch Ratings.

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Contacts

Fitch Ratings
Jenny Ovalle, +1 212-908-0849
Associate Director
Asset Backed Securities
One State Street Plaza
New York, NY
or
Rob Rowan, +1 212-908-9159
Senior Director
Fitch Wire
or
Media Relations, New York
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Jenny Ovalle, +1 212-908-0849
Associate Director
Asset Backed Securities
One State Street Plaza
New York, NY
or
Rob Rowan, +1 212-908-9159
Senior Director
Fitch Wire
or
Media Relations, New York
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com