Canadian Treasurer

December 8, 2010

Moody's: Canadian credit card performance stable in Q3

Toronto, December 07, 2010 -- The performance of Canadian credit card debt continued to improve in the third quarter of 2010, as the charge-off rate index pulled back to 3.97%, almost a percentage point below its record high of 4.92% in third quarter 2009, Moody's Investors Service says in its latest Credit Card Indices for Canada. During the third quarter the charge-off rate dropped sharply from 4.61% the previous quarter.

"Canada's robust recovery has recently moderated, but looking ahead we still expect it to be strong enough to support a stable credit card sector," says Michael Buzanis, Moody's Vice President -- Senior Credit Officer.

Moody's changed its outlook on the Canadian Credit Card asset-backed security sector to stable from negative in October.

Additional measures of card performance also posted improvements in the third quarter.

The delinquency rate declined marginally in the third quarter, dropping to 3.79% from 2.79% the previous quarter. Often a harbinger for future trends in charge-offs, the delinquency rate index measures the proportion of
account balances for which monthly payment is more than 30 days past due.

The payment rate index continued to improve in the third quarter, to 31.92%. The payment rate has advanced 163 basis points from a year ago. As a measure of cardholders' willingness and ability to pay credit card
debt, payment rates that are high suggest stronger credit.

Credit card performance in Canada continues to compare favorably to that in the US and the UK. For example, the charge-off rate in the US for the fourth quarter was 9.46%, while it was 7.55% in the UK.

Moody's Canadian Credit Card Indices are composed of owned and managed portfolios of Visa and MasterCard issuers in Canada. As of December 31, 2009, it tracked the performance of approximately C$70.5 billion in
receivables, or over approximately 80% of the outstanding Visa and MasterCard credit card receivables in Canada.



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