TEXT-Fitch:Chargeoffs hit four-year low for U.S. credit card ABS

Feb 09 - Positive momentum has carried into the beginning of this year for U.S. prime credit card ABS, with chargeoffs dropping to levels not seen in over four years, according to the latest index results from Fitch Ratings.

Fitch's Prime Credit Card Chargeoff Index for January dropped 31 basis points (bps) to 5.33%, a level not seen since the end of 2007. Chargeoff performance remained approximately 36% lower compared to January 2010. Prime chargeoffs have diminished by more than half from an all-time high of 11.37% set in February 2010. Along with chargeoffs, delinquencies and excess spread also improved.

ABS ratings on both prime and retail credit card trusts are expected to remain stable given available credit enhancement, loss coverage multiples, and structural protections afforded investors