Fitch U.S. ABS Outlook Weakens in 2006.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 -- While performance for most of the U.S. term asset-backed securities Asset-backed security A security that is collateralized by loans, leases, receivables, or installment contracts on personal property, not real estate. asset-backed security A debt security collateralized by specific assets. sector was stable in 2005, certain sectors bear close watch in 2006 due to rising energy costs, increasing interest rates, pronounced household debt levels, decelerating home appreciation and corporate concerns, 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. analysts during a recent conference call. Asset performance is expected to be either Stable or Improving in five of 10 ABS asset classes in 2006, Managing Director Chris Mrazek said during the call. Noting the weaker outlook, Mrazek said that Fitch remains guarded about subprime consumer and auto manufacturer health. While the economy overall has been resilient in 2005, Director Kevin D'Albert said that Fitch is concerned over what may happen with household leverage and consumer credit quality once these and other trends moderate and asked if this is as good as it gets? The health of the subprime consumer remains a particular area of concern in the credit card ABS arena according to Managing Director Mike Dean. For student loan ABS, Dean said 2005 was a hallmark year both in issuance and rating performance, with 2006 auguring for more of the same even with an intensified competitive environment. Senior Director John Bella, Jr. said that dealer floorplan and rental fleet ABS may be the auto ABS sectors most adversely affected by broader auto sector trends and the mounting troubles with auto manufacturers, particularly GM. Commercial ABS sectors such as aircraft finance remain negative in spite of some improvements and equipment leasing Equipment Leasing is a financing option to lease equipment for a certain amount of time. Leasing Benefits
A replay of the Fitch conference is available on the Fitch Ratings web site until Dec. 28 by going to the 'Resource Library' in the 'Teleconferences & Online Events' page under 'U.S. ABS Outlook'. Domestic participants can also dial 800-642-1687, and international listeners can dial 706-645-9291 and also use the conference ID, '3232366'. 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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