US ABS seen stable though credit environment will be less favourable - Fitch |
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Thu, 18 Oct 2007 05:51
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MUMBAI (Thomson Financial) - Fitch Ratings said US asset-backed securities (ABS) will likely remain reasonably stable though consumers face a less favourable credit environment of lower consumer spending and slowing income growth for the remainder of this year and into 2008.'There has been little ripple effect thus far for credit card, auto, and student loan ABS, however changes in consumer spending, employment growth, and increased household debt leverage are signaling that asset performance may be more volatile going forward,' said director Kevin D'Albert in the agency's quarterly report.'The extent to which the downturn in the mortgage and housing markets will affect other ABS sectors depends largely on how these factors will impact the broader economy,' he added.Despite the significant liquidity constraints and deteriorating credit fundamentals, Fitch said it sees no immediate direct effect on the underlying credit quality and rating performance of existing ABS bonds.Fitch has issued 185 upgrades and 38 downgrades through the first nine months of 2007, compared with 133 upgrades and 77 downgrades during the same period in 2006.TFN.newsdesk@thomson.comjro/jroCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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Resolution ratings put on evolving watch - Fitch 