Fitch: Macroeconomic Data Will Bolster US Credit Card ABS

NEW YORK & CHICAGO--(BUSINESS WIRE)-- A slow down or reversal in performance for credit card ABS in the foreseeable future is unlikely, as macroeconomic conditions are near recent highs, Fitch Ratings says.

U.S. consumer confidence measures have steadily improved this year. After registering in the mid-90s for much of the first half this year, the Conference Board Consumer Confidence Index reached 103.0 in September, levels last observed in mid-2007. This was largely attributed to improvements in the labor market and expectations of business conditions. The Labor Department reported this month that total nonfarm payroll employment grew by 142,000 in September and that the unemployment rate remained stable at 5.1%.

Prime metrics will generally improve within their seasonal ranges. Prime chargeoffs will decline to near or hit new record lows this month. Gross yield and monthly payment rate (MPR), which measures how quickly borrowers pay back their balances, should also slightly rise and remain higher than their year-over-year mark. Prime 60+ delinquencies will remain stable at just under 1%.

Retail metrics will retreat slightly this month but remain strong. Chargeoffs should decline below 6% for the first time since November 2014. Delinquencies more than 60 days past due will increase slightly but remain below 2.5%. Both retail MPR and gross yield are expected to decline.

This preliminary data reflect the September reporting period (as of September 30, 2015) and October distribution date. Actual results will be available in early November.

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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20151023005637/en/

Fitch Ratings
Stephanie Lobaccaro
Associate Analyst
U.S. Structured Finance
+1 212-908-0769
33 Whitehall Street
New York, NY
or
Herman Poon
Director
U.S. Structured Finance
+1 212-908-0847
or
Rob Rowan
Senior Director
Fitch Wire
+1 212-908-9159
or
Media Relations:
Sandro Scenga, +1 212-908-0278
[email protected]

Source: Fitch Ratings

You May Also Be Interested In

• Loar Announces Pricing of Initial Public Offering
• Genomma Lab Internacional Announces Results for the First Quarter 2024
• Methanex Corporation – Notice of Cash Dividend