Fitch: Losses Up Slightly for U.S. Credit Card ABS in 2Q'14

NEW YORK--()--Link to Fitch Ratings' Report: Credit Card Index: Movers & Shakers -- U.S. (2Q14)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=752553

Quarterly chargeoffs for U.S. credit card ABS rose for the first time in over three years, though the move was likely an aberration, according to the latest quarterly index from Fitch Ratings.

Average quarterly chargeoffs for 2Q14 rose for the first time after 15 consecutive quarters of improvement, increasing seven basis points to 3.07% from 3%. That said, 'credit card ABS delinquencies have been easing for the last three months so the increase in losses is more a seasonal blip,' said Managing Director Michael Dean. 'The credit quality of credit card ABS borrowers remains stellar as consumers are keeping their payment obligations in check.'

Even with last quarter's increase, chargeoffs are still 21% lower than 2Q'13 and 72% lower since the 2009 peak. Credit card ABS outstandings have also been rising consistently for the last six quarters and, at $132 billion are now back to pre-2012 levels.

The U.S. Credit Card ABS Index is part of Fitch's series of structured finance index reports. The index reports are updated quarterly and are available at 'www.fitchratings.com' or by clicking on the above link.

Additional information is available at www.fitchratings.com.

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Contacts

Fitch Ratings
Herman Poon, +1 212-908-0847
Director
Fitch Ratings, Inc., One State Street Plaza, New York, NY 10004
or
Michael Dean, +1 212-908-0556
Managing Director
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Herman Poon, +1 212-908-0847
Director
Fitch Ratings, Inc., One State Street Plaza, New York, NY 10004
or
Michael Dean, +1 212-908-0556
Managing Director
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com