Fitch downgrades Advanta

Fitch Ratings said it downgraded Advanta Corp.'s long-term issuer default rating to CC from BB-, short-term issuer default rating to C from B and senior unsecured to CC/RR4 from BB-.

The agency lowered Advanta Bank Corp.'s long-term issuer default rating to CCC from BB- and short-term issuer default rating to C from B.

The outlook remains negative.

Fitch said the downgrade reflects significant deterioration in profitability and portfolio credit quality and the heightened risk of breaching early amortization triggers on off-balance sheet asset-backed securities transactions, which could lead to a possible shut-down of the business.

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