Fitch U.S. ABS Chart of the Month: Low Oil a Plus for Credit Cards

NEW YORK--(BUSINESS WIRE)-- Link to Fitch Ratings' Report: U.S. ABS Chart of the Month

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=877233

Still-low oil prices could prove to be a boon for already-strong U.S. credit card ABS performance in the coming months, according to Fitch Ratings in its latest U.S. ABS chart of the month.

'Oil price declines are leading to a sustained drop in gasoline and heating oil prices this winter, which is adding more savings into U.S. households,' said Director Herman Poon. 'This could benefit certain credit card ABS performance metrics such as delinquencies and consumer credit card payment patterns.'

A persistent decline in fuel prices coupled with higher consumer confidence and disciplined spending patterns will help propel credit card ABS performance as well. This on top of consumer confidence and retail sales ending 2015 higher than the prior year.

A trend to watch this year will be the future trajectory of interest rates. While the FOMC's 25-basis point increase in December will have minimal impact on credit card ABS, the Federal Reserve's plan to continue raising short-term interest rates could change that in the long term.

Fitch's U.S. ABS Chart of the Month offers succinct perspective of high level macroeconomic trends and how they impact the world of ABS. The chart is available at 'www.fitchratings.com' or by clicking on the above link.

Additional information is available at www.fitchratings.com.

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Fitch Ratings
Jenny Ovalle
Associate Director,
+1-212-908-0849
Fitch Ratings, Inc., 33 Whitehall Street, New York, NY, 10004
or
Herman Poon
Director
+1-212-908-0847
or
Media Relations:
Sandro Scenga, +1 212-908-0278
[email protected]

Source: Fitch Ratings

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