NEW YORK--(BUSINESS WIRE)--U.S. prime credit card ABS collateral metrics began the new year on the right track with chargeoffs and monthly payment rates hitting new historic levels, according to the latest monthly index results from Fitch Ratings. 60+ day delinquencies remain flat while gross yield and three-month excess spread decline.
Fitch's Prime Credit Card Chargeoff Index reached another record low for the January collection period and now stands at 2.96%. The index has declined 24% year-over-year (YOY) and is now 74% below its historic high of 11.52% reached in September 2009.
Fitch's Prime Credit Card 60+ Day Delinquency Index increased by one basis point (bp) month-over month (MOM) to 1.21%, after touching a historical low in January. This index has declined 25% YOY and now stands 73% below its peak level of 4.54% reached at the end of 2009.
Fitch's Monthly Payment Rate (MPR) Index improved 12 bps MOM to 27.25% and is approximately 10% higher YOY. This index is now at its highest level since the inception of Fitch's Prime Credit Card Index in 1991.
On the other hand, Fitch's Prime Gross Yield Index retracted after a marginal gain last month, falling to 17.37% in February. The decrease in gross yield also contributed to a decrease in the Fitch Three-month Average Excess Spread Index to 12.86%. However, this index stands at over twice its lifetime average of 6.42%.
Fitch's Prime Credit Card Index was established in 1991 and tracks over $122 billion of prime credit card ABS backed by approximately $251 billion of principal receivables. The index is primarily comprised of general purpose portfolios originated by institutions such as Bank of America, Citibank, Chase, Capital One, Discover, etc.
Retail card performance also seems to be beginning 2014 on a strong note as chargeoffs, gross yield and payment rates all improved. However, excess spread and delinquency levels faired less favorably according to Fitch's Retail Credit Card Indices.
Fitch's Retail Credit Card 60+ Day Delinquency Index increased by 9 bps to 2.73%, a 3.40% increase MOM. During the same period however, Fitch's Retail Credit Card Chargeoff Index decreased by 19 bps to 6.48%, decreasing about 3% MOM. The Retail Chargeoff index now remains 52% lower than its peak of 13.41% reached in March 2010.
Fitch's Retail Credit Card Gross Yield Index increased by 71 bps to 26.80% from the previous month, and remains up nearly 2% YOY. However, Fitch's 3-Month Average Excess Spread Index declined by 27 bps MOM to 16.68%, the fourth consecutive decline. Fitch's Retail Credit Card MPR Index increased by 123 bps MOM to 16.64%, and remains up YOY by nearly 2%.
Fitch's Retail Credit Card Indices track more than $19 billion of retail or private label credit card ABS backed by over $33 billion of principal receivables. The index is primarily comprised of private label portfolios originated and serviced by Citibank (South Dakota) N.A., GE Capital Retail Bank and Comenity Bank (Formerly World Financial Network National Bank). More than 165 retailers are incorporated including Wall-Mart, Sears, Home Depot, Federated, Lowes, J.C. Penney, Limited Brands, Best Buy, Lane Bryant and Dillard's, among others.
Additional information is available at 'www.fitchratings.com'.