Fitch: U.S. Credit Card ABS Metrics Near Record Levels

NEW YORK--()--U.S. credit card ABS performance will stay in record territory for the near term, Fitch Ratings says. Preliminary index results indicate that prime indices will move within seasonal expectations while our retail indices will pull back slightly from record levels. We believe that continuing positive macroeconomic factors including increased retail sales and stability in the unemployment rate could be contributing to this trend. Last week, the U.S. Department of Commerce reported monthly retail sales increased by 1.1% in March. February's increase was 0.7%

Fitch's Prime Credit Card Index should remain within seasonal expectations as Prime 60+ day delinquencies will hit a new low. Gross yield will likely also rise seasonally. Monthly payment rate (MPR) will rise slightly. Prime chargeoffs are likely to increase slightly after declining for the past three months.

Some of Fitch's retail metrics are also expected to stay near their top. Retail gross yield will retreat slightly from its record high last month and MPR will decrease marginally. Chargeoffs are likely to be unchanged and 60+ day delinquencies should decline slightly.

These expectations are based on the April reporting period (as of March 31, 2014). Actual results will be available in early May.

Additional information is available on www.fitchratings.com.

The above article originally appeared as a post on the Fitch Wire credit market commentary page. The original article, which may include hyperlinks to companies and current ratings, can be accessed at www.fitchratings.com. All opinions expressed are those of Fitch Ratings.

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Contacts

Fitch Ratings
Media Relations
Sandro Scenga, New York
Tel: +1 212-908-0278
Email: sandro.scenga@fitchratings.com
or
Jared Kirsch
Analyst
Asset Backed Securities
+1-212-908-0646
1 State Street Plaza
New York, NY
or
Rob Rowan
Senior Director
Fitch Wire
+1-212-908-9159

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Contacts

Fitch Ratings
Media Relations
Sandro Scenga, New York
Tel: +1 212-908-0278
Email: sandro.scenga@fitchratings.com
or
Jared Kirsch
Analyst
Asset Backed Securities
+1-212-908-0646
1 State Street Plaza
New York, NY
or
Rob Rowan
Senior Director
Fitch Wire
+1-212-908-9159