The index showed that delinquencies have receded in recent months. This indicates that moderate improvement in default activity is possible for the rest of this year. Fitch director Brad Sohl said that while delinquency and default performance of timeshare receivables is weak relative to the past — and up 37% year-over-year — credit enhancement should result in limited negative rating actions. Total delinquencies decreased from February’s all time high of 5.58% to 4.89% in 2Q09. Monthly defaults of .88% for June — the highest observed level for the index — are up nearly 48% from last year’s .52%. Also, default reached 8.75% for the index in June. However, Fitch expects default levels to moderate slightly in the coming months, in light of recent downward delinquency trends.Fitch’s outlook for asset performance is that it will likely deteriorate, although the ratings will remain stable. The Fitch timeshare performance index, which summarizes average monthly delinquency and gross default trends tracked in Fitch’s database of timeshare ABS, is available on a quarterly basis.Total defaults on U.S. timeshare ABS hit another peak in the second quarter, according to Fitch Ratings timeshare ABS index.Total defualts on U.S. timeshare ABS hit another peak in the second quarter, according to Fitch Ratings timeshare ABS index.