OREANDA-NEWS. Last week's encouraging unemployment numbers may help continue the historic streak for U.S. credit card ABS , according to the latest monthly index results from Fitch Ratings.

The Bureau of Labor Statistics reported Friday that the unemployment rate had decreased by 1.2 percentage points to 5.5% and the number of unemployed persons decreased by 1.7 million to 8.7 million. However, The Department of Labor reported that jobless claims increased by 7,000 to 320,000 the week ending Feb. 28, it's the highest level since May. This bodes well for credit card chargeoffs, which declined in February after increasing for the two previous months.

Fitch's Prime Credit Card Chargeoff Index decreased 14 basis points (bps) to 2.67% or 4.98% MOM. The index is 9.80% lower year-over-year (YOY), and is 76.8% below its all-time high in 2009.

However, Fitch's Prime Credit Card 60+ Day Delinquency Index increased to 1.11%. The index is still 8.26% lower YOY, and 75.5% lower than its all-time high of 4.54% in December 2009 and January 2010.

Fitch's Prime Credit Card Gross Yield Index decreased to 17.36%. Fitch's Gross Yield Index has decreased in the month of February every year since 1991, with an average decrease of 4.78%. This decrease in the Gross Yield index contributed to Fitch's Prime Credit Card Three-Month Average Excess Spread Index decreasing to 13.30%. The Prime Three-Month Average Excess Spread Index is 3.42% higher YOY, while the Prime Gross Yield Index is six bps lower YOY.

Similarly, Fitch's Prime Credit Card Monthly Payment Rate (MPR) Index decreased to 27.36%, after hitting a historical high last month. The index is 40 bps higher YOY.

Fitch's Prime Credit Card Index was established in 1991 and tracks over \$145.4 billion of prime credit card ABS backed by approximately \$253.5 billion of principal receivables. The index is primarily comprised of general purpose portfolios originated by institutions such as Bank of America, Citibank, Chase, Capital One, Discover, etc.

Like the Prime Index, Fitch's Retail Credit Card Chargeoff Index decreased to 172bps MOM to 6.27%. The index is now 3.24% lower YOY, and is 53% lower than its historical high of 13.14% reached in March 2010. During the same period however, Fitch's Retail Credit Card 60+ Day Delinquency Index increased to 2.57%. Despite a 5.16% increase MOM the index is 5.86% lower YOY.

Fitch's Retail Credit Card Monthly Payment Rate (MPR) Index increased to 16.66%, in line with seasonal trends. The index increased 387bps MOM but is only 12bps higher YOY.

Fitch's Retail Credit Card Gross Yield Index decreased to 26.87%. The index is still 26bps higher YOY. Likewise, Fitch's Retail Credit Card Three-Month Average Excess Spread Index decreased to 17.52%. The index is still 5.04% higher YOY.

Fitch's Retail Credit Card Index tracks more than \$20.7 billion of retail or private label credit card ABS backed by over \$31.2 billion of principal receivables. The index is primarily comprised of private label portfolios originated and serviced by Citibank (South Dakota) N.A, Synchrony Financial (Formerly GE Capital Retail Bank), and Comenity Bank (formerly World Financial Network National Bank). More than 165 retailers are incorporated including Walmart, Sears, Home Depot, Federated, Lowes, J.C. Penney, Limited Brands, Best Buy, Lane Bryant and Dillard's, among others.