Fitch: U.S. Credit Card ABS Servicers Address Rising Losses.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- A weakening economy and higher unemployment levels have prompted U.S. ABS (Automatic Backup System) See backup program. credit card seller/servicers to take proactive steps to mitigate risk exposure in the face of rising delinquencies and losses, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. in a new report. With credit card chargeoffs increasing steadily in recent months, seller/servicers need to be able quickly act and react to changing trends, according to Managing Director Stephanie Petosa. 'Through numerous on-site reviews and credit card seller/servicer rating analysis, Fitch has noticed a number of seller/servicers already taking proactive steps to mitigate future risk,' said Petosa. 'Some of these steps include using third-party data to identify emerging trends, tightening origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real standards and evaluating loss mitigation tools to help customers through difficult times.' In response to the recent increase in chargeoffs, issuers have taken steps to re-price and manage risks in their portfolio which has allowed excess spread levels to remain fairly robust. Fitch expects chargeoffs to continue to rise into 2009. As such, the effectiveness and flexibility of these strategies will be tested further. 'The ability of credit card seller/servicers to continue to proactively manage their risk exposure within their portfolios is a critical component to the health and performance of the trusts that Fitch rates,' said Petosa. 'Are Credit Card ABS Seller/Servicers Stepping Up?' is available on the Fitch Ratings web site at www.fitchratings.com under the following headers: Structured Finance -- Operational Risk Group -- Special Reports Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, 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 Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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