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U.S. Credit Card ABS Issuer Report: Collateral Performance Strengthened To Pre-Recession Levels In Third-Quarter 2011 Nov 11

  • ID: 2027126
  • November 2011
  • Region: United States
  • Standard & Poors
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The performance of receivables backing U.S. credit card asset-backed securities (ABS) transactions improved considerably during the third quarter of 2011, as loss rates decreased to a level not seen since 2007. Loss rates for bank and private-label credit cards decreased to 4.6% and 6.3% in September 2011, a drop of more than 56% and almost 50% from their February 2010 peaks of 10.5% and 12.6%, respectively. As of Sept. 30, 2011, the U.S. and Canada Credit Card Quality Index (CCQI) tracked approximately $337.6 billion of receivables, which is about 43% of the $790.1 total U.S. revolving consumer debt balance. While credit card ABS issuance stayed low compared with pre-recession levels, it exceeded 2010 volume and remains within Standard & Poor's...

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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