Crude Oil ( ) Brent Crude ( ) Natural Gas ( ) S&P 500 ( ) PHLX Oil ( )
 February 3, 2016 - 10:25 AM EST
Print Email Article Font Down Font Up
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

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=877233

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 term.

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.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. 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 THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE 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 WEBSITE.

Fitch Ratings
Jenny Ovalle
Associate Director,
+1-212-908-0849
Fitch Ratings, Inc., 33 Whitehall Street, New York, NY, 10004
or
Herman Poon
Director
+1-212-908-0847
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com


Source: Business Wire (February 3, 2016 - 10:25 AM EST)

News by QuoteMedia
www.quotemedia.com