US June credit card ABS delinquencies ease-report
Fri Jul 30, 2004
NEW YORK, July 30 (Reuters) - The level of delinquencies in U.S. asset-backed securities supported by credit card loans decreased in June in conjunction with rising U.S. employment levels, according to a report from Standard & Poor's.
Also, the amount of charge-offs, or losses credit card issuers take on receivables they consider uncollectable, also decreased in June, the credit-rating agency said in a report released on Friday.
"The charge-off rate for the month was 6.6 percent, a 40 basis point decrease from the 7.0 percent rate reported for May," S&P said, adding "the 6.6 percent charge-off rate for June represents the tenth consecutive month that charge-off rates have not exceeded 7.0 percent."
The amount of delinquencies, or bills past due, over 30-days eased to 4.3 percent in June from 4.4 percent in May and down from 5.1 percent in June 2003, S&P said.
The addition of 1.3 million jobs to the U.S. economy over the first half of 2004 likely helped reduce the delinquency and charge-off rates, S&P said.
"Employment numbers will likely dictate the direction of charge-off and delinquency levels during the second half of 2004," the agency said.
The total U.S. credit card receivables outstanding in June was $421.3 billion, up from $417.5 billion as of June, 2003, S&P said.
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