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US credit card ABS remained strong in Q1, Fitch says

Fitch Ratings said March 31 that U.S. credit card ABSperformance remained strong in the first quarter of 2016, as the labor marketcontinued its positive streak during the period.

Fitch's Prime Credit Card Gross Yield Index improved to19.24% in March, while the rating agency's Prime Credit Card Three-Month ExcessSpread Index remained at 13.69%. The index is 2.78% higher year over year. Themeasure of 60-plus day delinquencies was flat, decreasing one basis point to1.05%. The delinquency index is 7.08% below prior year levels and well belowthe historical high of 4.54% reached in December 2009.

Fitch's Prime Credit Card Monthly Payment Rate Indexfell to 26.96% in March. The rating agency's Prime Credit Card Chargeoff Indexrose to 2.69%, the index is about 3.24% lower year over year and well below the2009 peak of 11.52%.

Fitch's Retail Credit Card Gross Yield Index improvedto 30.82% in March and registered a new historical high. The rating agency'sRetail Three-Month Excess Spread Index also advanced 3.10% to 18.61%. Fitch'sRetail Credit Card 60+ Day Delinquency Index dropped to 2.51%.

Fitch's Retail Chargeoff Index increased to 6.97% inMarch with the index about 47% lower than its all-time high of 13.4% from March2010. The rating agency's MPR Index fell to 16.02%. The index is 18 basispoints higher than the previous year.