News Column

Fitch: US Credit Card ABS Metrics Break Record

June 18, 2014



NEW YORK--(BUSINESS WIRE)-- Credit card ABS delinquencies are expected to touch new lows for the May reporting period, according to advance estimates of Fitch's Prime 60+ Day Delinquency Index. Prime chargeoffs will also decline toward previous records reached earlier this year. Fitch's Retail 60+ Day Delinquency Index will also approach its low, although retail chargeoffs are expected to rise slightly.

Going forward we expect these results to rise slightly but remain below historic averages. We do not expect the changes to have an impact on credit card ABS ratings.

Fitch believes these results are connected to relative strength in the job market. According to the Labor Department, the economy added 217,000 jobs in May - the fourth straight month of job gains above 200,000. However, initial jobless claims increased by 4,000 to 317,000 for the week ending June 7.

We expect Fitch's Prime Gross Yield Index to increase slightly for the May reporting period, consistent with seasonal trends. We also expect Fitch's Prime Monthly Payment Rate (MPR) Index to rise. Retail gross yield and MPR will rise slightly. Actual index results will be available in early July.

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.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.



Fitch Ratings

Jared Kirsch, +1-212-908-0646

Analyst

US Asset Backed Securities

33 Whitehall Street

New York, NY

or

Rob Rowan, +1-212-908-9159

Senior Director

Fitch Wire

or

Media Relations

Sandro Scenga, +1-212-908-0278

sandro.scenga@fitchratings.com

Source: Fitch Ratings


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