The effects of the new Federal Bankruptcy Law, implemented late last year, appear to have come and gone as Fitch Ratings has affirmed 623 classes from 27 U.S. ABS credit card transactions based on the performance data for the most recent reporting period ended Jan. 31, 2006. The cumulative dollar amount affected by Fitch’s rating action is approximately $246 billion (original balance).


“These improvements demonstrate that last fall’s spike in personal bankruptcy filings have finally worked their way through U.S. credit card master trusts,” said Darryl Osojnak, Senior Director, Fitch Ratings. The spike in personal bankruptcies followed the implementation of the new Federal statutes that took effect on Oct. 17, 2005.


For more information, see Fitch’s March 7 rating action commentary, “U.S. Credit Card Chargeoffs ‘Fully Digest’ Bankruptcy Effect, Drop Resoundingly,” which is available on the Fitch Ratings web site at www.fitchratings.com.



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