...September s credit card remittance reports (released in late October) show increasing delinquencies and worsening roll rates. Fewer card holders are curing their delinquencies and more are migrating into more serious delinquency. Reports released later this month will show a one-time dip in excess spread in October, due to the tightening in the Prime-LIBOR basis. But while excess spread will recover in November, we expect it to gradually erode in the coming year, mainly due to ri sing charge-off rates. We continue to have a negative outlook on the credit card sector and believe collateral pe rformance will deteriorate throughout ####. There is now also a greater likelihood of downgrades of credit card-backed debt in the coming year, especially among subordinate notes. ...

Report Type: Special Report
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 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.