...For February ####, credit card performance deteriorated in three of the five met- rics tracked by Moody's Credit Card Cr edit Indices, which tracks more than $### billion of U.S. bank credit card loans backing securities rated by Moody's. Moody's has a negative Outlook on the credit card sector, but sees no immediate rating implications for credit card asset-backed securities. Moody's believes that fundamental differences in credit underwr iting standards, risk management, issuer credit strength, and macroeconomic drivers explain why the credit card sector does not appear to be following the down turn in the sub-prime mortgage sector at this time. The charge-off rate is now the highest it has been since December ####, when charge-offs temporarily spiked due to a change in the consumer bankruptcy law. The normalization of bankruptcy filings and economic headwinds will most cer- tainly continue to increase charge-off rate s throughout the year and, perhaps, into ####. At #.##%, the February...

Report Type: Index
Free Sample: Click Here to Download

Enter the keyword(s) which you would like to search for within this document and click "Search"

 

 Moody's Global Credit Research
Moody's Investors Service, a leading global credit rating, research and risk analysis firm, publishes credit opinions, research, and ratings on fixed-income securities, issuers of securities and other credit obligations. Credit ratings and research help investors analyze the credit risks associated with fixed-income securities. Ratings also create efficiencies in fixed-income markets and similar obligations, such as insurance and derivatives, by providing reliable, credible, and independent assessments of credit risk. For issuers, Moody's services increase market liquidity and may reduce transaction costs.