July 8 (Reuters) - (The following statement was released by the rating agency)
Chargeoffs and delinquencies fell to historic lows for the third straight quarter, which augurs for an equally strong second half of the year for U.S. credit card ABS, according to the quarterly latest index results from Fitch Ratings.
Second-quarter 2013 (2Q'13) three-month average chargeoffs came in at 3.87%, a 26% decline compared to the 2Q'12 average of 5.23%. In addition, 60+ day delinquencies broke new records last quarter, averaging 1.48% for 2Q'13 (compared to 1.63% in 2Q'12).
That said, the pace of improvement slowed slightly this past quarter and figures to follow suit for the remainder of 2013. 'Credit card losses are nearing a plateau and will likely start to trend modestly higher as 2013 comes to a close,' said Managing Director Michael Dean.
Monthly payment rates rose again in second-quarter 2013 (2Q'13) to an all-time high of 25.30%. This is a sign that 'consumers are still making their credit card payments on-time and paying more of their balance off in the process,' said Dean.
The U.S. Credit Card ABS Index is part of Fitch's series of structured finance index reports. The index reports are updated quarterly and are available at 'www.fitchratings.com' or by clicking on the below link.
Link to Fitch Ratings' Report: Credit Card Index: Movers & Shakers â€“ U.S. (2Q13)