<div id="subtitle">Fitch Ratings says retail credit card defaults in December hit near-record levels</div><div><p>Credit card defaults on store-branded accounts hit near record levels during the holiday shopping season and the trend is likely to continue this year, Fitch Ratings analysts said Thursday.</p><p>Fitch's report shows that more than one in every eight dollars of receivables was written off as uncollectable during the November collection period on an annualized basis.</p><p>Fitch's Retail Credit Card Chargeoff Index in December snapped a two-month decline, rising 1.2 percent to 12.56 percent from the previous month. A new all-time high charge-off rate of 12.81 percent was set in August 2009. Throughout the year, retail charge-offs averaged 11.88 percent, more than 42 percent above the historical average of 8.34 percent.</p><p>"While results were negative throughout the year, we have seen the pace of deterioration moderate more recently," Fitch Managing Director Michael Dean said in a statement.</p><p>Losses may be reduced by card issuers as they set stricter standards and become more selective in offering new accounts, Dean said.</p><p>Fitch analysts expect retail card charge-offs to remain elevated throughout first half of the year in part because of expected continued high unemployment.</p><p>Despite the elevated charge-off and delinquency measures, Fitch expects retail card ratings to remain stable throughout 2010.</p><p>Revolving credit usage decreased at an annual rate of 18.5 percent in November — the largest dollar-value drop since 1968, Fitch analysts said.</p><p>As long as the employment and income growth remain weak, demand for consumer credit — especially retail credit — will be limited, the analysts said.</p><p>The Fitch index tracks more than $65 billion in principal receivables of retail or private-label credit cards. The cards are distributed by more than 165 retailers including Wal-Mart, Sears, Home Depot, and Best Buy.</p><img src="http://admatch-syndication.mochila.com/images/ad.gif?aid=66904671&bid=informcom" /></div><div id="copyright"><div>

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