Standard & Poor's said the increase in credit card minimum payments, due to go into effect at the end of next year, will not negatively impact credit card ABS and will more than likely be offset by higher payment rates and the positive effects of recently enacted bankruptcy reform.

Minimum payment increases on credit card balances were recommended by the Federal Financial Institutions Examination Council in 2003. Credit card companies must change their minimum payment requirements by the end of 2006, but most will have made the adjustments by the end of the first quarter of 2006, said S&P analyst Carl Neff.

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