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As Credit Card Use Increases, Issuers Take Actions To Manage Risk Aug 08
Standard & Poors, Aug 2008
Abstract
Now that the U.S. real estate bubble has burst and lenders are restricting access to home equity credit lines, consumers are pulling out their credit cards more frequently to cover their expenses. Credit card debt in the U.S. is growing faster today than in recent years, following historically low annual growth rates of about 3.3% between 2002 and 2006. It's no surprise that these recent increases have sparked concern about the potential impact on credit card asset-backed securities (ABS), especially in light of limited alternative funding sources, the weakening job market, a low savings rate, and high energy prices. (Listen to the related podcast titled, 'Issuers Work To Keep Pace As Credit Card Use Rises,' dated Aug. 7, 2008.) At...
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
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