KBRA Publishes Financial Institutions Research: “Credit Card Banks: A Fresh Perspective on Risk”

NEW YORK--()--Kroll Bond Rating Agency (KBRA) has released a new research report entitled “Credit Card Banks: A Fresh Perspective on Risk.” The report examines how legacy rating agencies weigh the risks of credit card banks, including the notion that these companies bear “monoline” business risk. KBRA reviews this and other risks and makes the following key points:

  • The monoline label—and the risk that is implied in it—is misplaced when it comes to credit card banks.
  • The performance of credit card banks compares favorably to universal and other diversified banks, particularly during periods of economic stress.
  • The analytical approach employed by the legacy rating agencies unjustifiably penalizes the four largest independent credit card banks, American Express, Discover Financial Services, Capital One Financial, and Synchrony Financial.

To view the report, please click here.

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About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

Contacts

Kroll Bond Rating Agency
Analytical Contacts:
Van Hesser, Senior Managing Director
vhesser@kbra.com, (646) 731-2305
or
Leila Al-Bori, Senior Analyst
lalbori@kbra.com, (646) 731-2331

Contacts

Kroll Bond Rating Agency
Analytical Contacts:
Van Hesser, Senior Managing Director
vhesser@kbra.com, (646) 731-2305
or
Leila Al-Bori, Senior Analyst
lalbori@kbra.com, (646) 731-2331