Fitch: Consumer Prudence Keeps Credit Card Asset Performance on Upswing

NEW YORK--(BUSINESS WIRE)-- Average credit card monthly payment rates (MPRs) reached all-time historical levels during in the second quarter of 2015 (2Q15) as consumers kept payment obligations in check, according to Fitch Ratings' Quarterly Credit Card Index. As a result, borrower credit profiles remained stellar and the sector's improvements continued from the prior quarter.

Late payments continued to ease, also hovering at historical low levels, leaving chargeoff rates steady and delinquency rates at new lows.

'Improvements in the labor market heading into the summer helped keep credit card ABS metrics near their records,' says Herman Poon, Director in Fitch's Asset-Backed Securities group.

An improvement in yield performance, coupled with modestly stable losses, gave way to new highs for excess spread in 2Q15. Current levels more than doubled in performance from the crisis at end of 2009.

Fitch expects credit card ABS prime gross yield and prime MPR to improve in the short term, in line with seasonal trends. Prime 60+ day delinquencies are expected to decline near historical lows. Prime chargeoffs are expected to increase slightly as this metric slowly normalizes.

The full report, 'Credit Card Index: Movers & Shakers - North America,' is available at www.fitchratings.com.

Additional information is available at 'www.fitchratings.com'.

Credit Card Index: Movers & Shakers -- North America

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=869001

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View source version on businesswire.com: http://www.businesswire.com/news/home/20150730006743/en/

Fitch Ratings
Herman Poon
Director
+1-212-908-0847
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Michael Dean
Managing Director
+1-212-908-0556
or
Media Relations
Sandro Scenga, +1 212-908-0278
[email protected]

Source: Fitch Ratings

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