By Ovunc Kutlu
ISTANBUL (AA) - Canada's credit card performance weakened further in the fourth quarter of 2023, Fitch Ratings said in a statement Wednesday.
Both delinquencies and charge-offs increased in the October-December period of last year compared to the previous quarter, approaching pre-pandemic levels, the rating agency said in a statement.
Three-month average late stage delinquencies, which are more than 60 days past due, increased for the second consecutive quarter to reach 1.11% in the October-December period, up from 1% in the previous quarter.
The latest ratio is near pre-pandemic levels, when it had stood at 1.19% in the fourth quarter of 2019, according to the agency.
"The weakening performance reflects further pressure on consumers from higher prices and interest rates as labor market conditions softened," said the statement.
Fitch said it expects further deterioration in credit card performance due to subdued economic growth, leading to higher unemployment in the second half of this year, and warned that this would pressure households' ability to meet payment obligations.