Fitch U.S. Term ABS Credit Action Update: June Stable ABS Performance Continues.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 -- 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. reported three upgrades in the credit card sector in June and no downgrades, 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. the latest U.S. term ABS Credit Action Report. Despite rising interest rates and smaller than expected job growth in June, Fitch sees continued strength in consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. and stable ABS sector performance for the second half of the year. Year-to-date, Fitch has issued 53 upgrades and 169 downgrades, compared with 32 upgrades and 844 downgrades in the first half of 2003. The first six months of 2004 saw upgrades in the following market sectors: equipment (29); autos (13); student loans (five); and credit cards (six). Upgrades were due to stable collateral performance and credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing levels exceeding stressed remaining losses. Negative rating actions included equipment (101), tobacco (40), aircraft (16), franchise (seven), and student loans (five). It should be noted, equipment sector downgrades were skewed skewed curve of a usually unimodal distribution with one tail drawn out more than the other and the median will lie above or below the mean. skewed Epidemiology adjective Referring to an asymmetrical distribution of a population or of data due to repeated credit actions on one sponsor. Overall, downgrades were due to weak performance, except in the case of tobacco and student loans, which were counterparty related. The term ABS Credit Action Report (CAR) presents monthly and year-to-date credit rating statistics for term consumer and commercial ABS products. Coverage of consumer assets includes auto, credit card, student loans, and time share receivables, while commercial-related assets include aircraft, equipment, franchise loan, health care, small business loan, and tobacco settlements. In addition, the report discusses credit issues affecting the term ABS market and lists current presale reports and gives details about other ABS credit research. The 'Term ABS Credit Action Report: June 2004' available on the Fitch Ratings web site at 'www.fitchratings.com'. |
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