Abstract: Charge-offs rose again, but only slightly, in May among the trusts in Standard&Poor's Ratings Services' U.S. bankcard Credit Card Quality Index (CCQI), turning in a 10 basis point (bp) increase. The total payment rate, aided by tax rebates, increased to the highest level we've seen since January, while total delinquencies dropped another 10 bps. Excess spread, which provides the first level of protection against defaults, remained healthy at 7.1%. In addition, credit card asset-backed securities (ABS) issuance continued to be robust, with approximately 36 transactions closing in May. We observed the following key patterns during May 2008: Charge-offs increased 10 bps to 6.0% from April; Delinquencies in the 30- and 60-plus-day categories were down 10 bps to 4.3%

Brief Excerpt: RESEARCH Ratings Definitions U.S. Credit Card Quality Index: The Rise In Charge-Offs Lost Steam In May, And Overall Trust Performance Was Mixed Publication date: 14-Jul-2008 Primary Credit Analyst: Kelly Luo, New York (1) 212-438-2535;...

Report Type: Commentary
Sector: Asset-Backed Commercial Paper, Asset-Backed Securities, Collateralized Debt Obligations, Commercial MBS, Real Estate Companies, Residential MBS, Servicer Evaluations, Structured Finance
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 S&P Credit Research
S&P Credit Research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.