TEXT-S&P: Canadian charge-offs up in Sept. as payment rates fell

Thu Nov 8, 2012 1:03pm EST
 
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Nov 8 - Growth in the Canadian economy has slowed, and the unemployment rate
increased to 7.4% in September from 7.3% in August, said an article published
today by Standard & Poor's Ratings Services, titled "Canadian Credit Card
Quality Index Report: Charge-Offs Increased As Payment Rates Declined In
September 2012."

"We have observed that the performance improvement of Canadian credit card 
receivables has also slowed," said Standard & Poor's credit analyst Matthew 
Mitchell. "The Canadian Credit Card Quality Index charge-off rate increased to 
3.9% in September from 3.8% in August," said Mr. Mitchell. "The payment rates 
declined to 33.2% from 37.2% in August, and yield and excess spread declined 
to 19.9% and 11.7%, respectively, from 21.3% and 13.3% the previous month."

The report is available to subscribers of RatingsDirect on the Global Credit 
Portal at www.globalcreditportal.com. If you are not a RatingsDirect 
subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 
or sending an e-mail to research_request@standardandpoors.com. Ratings 
information can also be found on Standard & Poor's public Web site by using 
the Ratings search box located in the left column at www.standardandpoors.com.