NEW YORK--(BUSINESS WIRE)--Link to Fitch Ratings' Report: Bankruptcy Filings to Recede Further
Although it will be difficult to top 2011, bankruptcy filings will continue to drop to the tune of an added 4% to 5% before the year is out, according to Fitch Ratings in a new report.
The first three months of 2012 are helping to support that projection, with bankruptcies tracking roughly 8%-10% below last year. That said, the pace of improvement for bankruptcy filings figures to level off as banks begin to loosen underwriting standards and grant more consumers access to larger credit lines.
Nonetheless, the overall improvement Fitch is projecting means continued stability for credit card ABS performance. Fitch expects credit card ABS chargeoffs to remain below 6% well into third quarter-2012 (3Q'12).
The effect of decreased bankruptcy filings on credit card ABS collateral has remained very positive. Notably, credit card delinquencies and chargeoffs fell dramatically last year. Overall losses fell below 6% in 4Q'11, 35% better than 4Q'10.
'Bankruptcy Filings to Recede Further' is available at 'www.fitchratings.com' or by clicking on the above link.
Additional information is available on www.fitchratings.com