RPT-Fitch: U.S. credit card payment rate to reach all-time high
June 20 (Reuters) - (The following statement was released by the rating agency)
Preliminary results for Fitch U.S. credit card indices indicate that performance gains will reach new records and will continue to support rating stability for credit card ABS, Fitch Ratings says. We expect these metrics to return to slightly higher than historical averages by year end. Preliminary data for Fitch's Prime Monthly Payment Rate Index show the monthly payment rate (MPR) reached an all-time high (over 25%) as of the end of May. We anticipate Fitch's Prime Chargeoff Index to have fallen to a seven year low for the same period. An all-time low is also projected for the Fitch Prime 60+ Day Delinquency Index, the third record in as many months. Fitch's Prime Gross Yield Index is also expected to rise month over month.
Continuing a record-setting month, Fitch's Retail 60+ Day Delinquency Index is projected to decline to an all-time low, falling below 2.40%. Fitch also expects that its Retail Gross Yield, Chargeoff and MPR Indices will remain relatively flat for the May 2013 reporting period. Actual results for Fitch's Prime and Retail Credit Card Indices will be available by early July.