Fitch U.S. ABS Chart of the Month: Low Oil a Plus for Credit Cards
Link to Fitch Ratings' Report: U.S. ABS Chart of the Month
Still-low oil prices could prove to be a boon for already-strong U.S.
credit card ABS performance in the coming months, according to Fitch
Ratings in its latest U.S. ABS chart of the month.
'Oil price declines are leading to a sustained drop in gasoline and
heating oil prices this winter, which is adding more savings into U.S.
households,' said Director Herman Poon. 'This could benefit certain
credit card ABS performance metrics such as delinquencies and consumer
credit card payment patterns.'
A persistent decline in fuel prices coupled with higher consumer
confidence and disciplined spending patterns will help propel credit
card ABS performance as well. This on top of consumer confidence and
retail sales ending 2015 higher than the prior year.
A trend to watch this year will be the future trajectory of interest
rates. While the FOMC's 25-basis point increase in December will have
minimal impact on credit card ABS, the Federal Reserve's plan to
continue raising short-term interest rates could change that in the long
Fitch's U.S. ABS Chart of the Month offers succinct perspective of high
level macroeconomic trends and how they impact the world of ABS. The
chart is available at 'www.fitchratings.com'
or by clicking on the above link.
Additional information is available at www.fitchratings.com.
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PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS
SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS
OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES
AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF
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RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR
RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY
CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH
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Source: Business Wire
(February 3, 2016 - 10:25 AM EST)
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