Fitch: U.S. ABCP Credit Consistent Despite Declining Outstandings

NEW YORK--(BUSINESS WIRE)-- The credit outlook for U.S. ABCP for the remainder of 2015 remains stable, according to Fitch Ratings. This is consistent with the outlook for the financial institutions that act as liquidity support and credit enhancement providers. ABCP rating actions, if taken, will most likely reflect the health of sponsors, support providers, and other relevant counterparties.

ABCP conduits remain a significant source of funding for core bank clients. Despite declines in market outstandings, collateral credit quality and performance measures remain strong and transaction structures robust.

In late March, Fitch affirmed 26 U.S. ABCP programs following the completion of its annual portfolio review. The rating actions were based on a review of the conduits' portfolio compositions and the vehicles' credit and structural protections such as transaction-specific and program-wide credit and liquidity support. Outstandings across the 26 programs totaled $113 billion. Auto and commercial, trade receivables, credit cards and student loans account for most of the conduit holdings. Facility utilization rates across the portfolio were flat from last year at 63%.

Fitch has published a report summarizing its findings, 'U.S. ABCP Portfolio Review Summary'. The results are generally consistent with observed market activity over the last several years. The report includes a review of trends in ABCP outstandings, portfolio compositions and facility utilization rates.

'U.S. ABCP Portfolio Review Summary' is available at 'www.fitchratings.com' or by clicking on the above link.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research: U.S. ABCP Portfolio Review Summary

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864555

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Fitch Ratings
Brian Perry
Associate Director
+1-212-908-0142
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Kevin Corrigan
Senior Director
+1-212-908-9156
or
Sandro Scenga
+1-212-908-0278
New York
[email protected]

Source: Fitch Ratings

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