(The following statement was released by the rating agency)
Oct. 2 - Both the Canadian Credit Card Quality Index (Canadian CCQI) charge-off rate and the Canadian unemployment rate remained unchanged in August from July, at 3.8% and 7.3%, respectively, said an article published today by Standard & Poor's Ratings Services, titled "Canadian Credit Card Quality Index Report: Performance Remained Relatively Flat In August 2012." The Canadian CCQI tracks the performance of nearly C$16.1 billion in credit card receivables from four major Canadian trusts that issue credit card asset-backed securities and that we publicly rate.
"The charge-off rate in Canada continues to improve on a year-over-year basis, but the rate of improvement is declining," said Standard & Poor's credit analyst Matthew Mitchell. "We have observed a similar trend in the country's unemployment rate--a key factor in credit quality."
Payment rates declined to 37.2% from 38.6% in July but remain higher than their August 2011 levels. Yield and excess spread declined slightly in August, to 21.3% and 13.3%, respectively, from 21.4% and 13.4% the previous month.
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Primary Credit Analysts: John A Detweiler, CFA, New York (1) 212-438-7319;
Secondary Contacts: Ildiko Szilank, New York (1) 212-438-2614;
firstname.lastname@example.org Frank J Trick, New York (1) 212-438-1108; email@example.com Research Contributors: Darshan Rathod, CRISIL Global Analytical Center, an S&P affiliate, Mumbai Neha Panchal, CRISIL Global Analytical Center, an S&P affiliate, Mumbai Media Contact: April T Kabahar, New York 212-438-7530; firstname.lastname@example.org (Reporting By Hilary Russ)