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Moody's Investors Service yesterday reported that its prime credit card charge-off rate index through the end of March rose 50 basis points from the previous month, to a record high 9.3% of outstanding receivables. The delinquency rate index for credit card accounts more than 30 days late also set a new record of 6.4%, its highest point since peaking at 6.28% in December 1990. Moody's also revised its prediction for where the average credit card charge-off rate will peak. The company now says charge-offs likely will peak at 12% during the second quarter of next year, instead of at 10.5% during the second quarter of 2010, as previously forecast. That assumes unemployment also will peak in the first half of 2010 at about 10%. Separately, Fitch Ratings Inc. today reported that its prime credit card charge-off rate index for data collected through the end of February rose 101 basis points from the previous month, to 8.41% of receivables, eclipsing the previous mark of 7.52% set in November 2005. Fitch's credit card delinquency index for February, measuring the percentage of credit card receivables more than 60 days past due, rose 29 basis points from the previous month to 4.33%, setting a record high for the third consecutive month. Fitch expects its prime credit card charge-off index to "approach 10% by this time next year." Fitch's charge-off index for private-label retail credit cards in February also hit a record high of 12.31%, surpassing the previous high mark of 12.25% set in December 2004.
