MW: Fitch: US credit card losses may hit historic levels in 2009
By Michael Kitchen
NEW YORK (MarketWatch) -- Fitch Ratings said Monday that U.S. credit card portfolio losses will increase in the year ahead, with measures of credit continuing to deteriorate into 2009, and with some issuers surpassing historical loss peaks before 2009 is over. "A turn in the cycle will be heavily dependent upon the duration of an economic downturn and the severity of the increase in the unemployment rate," it said. It cited rising job losses, volatile energy prices and the absence of refinancing options such as low-rate balance transfers and home equity loans.
