Fitch affirms Advanta

Fitch Ratings said it affirmed Advanta Corp.'s long-term issuer default rating at BB-, short-term issuer default rating at B and senior unsecured rating at BB-, along with Advanta Bank Corp.'s long-term issuer default rating at BB-, short-term issuer default rating at B and long-term deposits at BB and Advanta Capital Trust I's trust preferred stock at B.

Fitch also revised the outlook to negative from stable.

The affirmation reflects Advanta's market position in the small business credit card industry, adequate risk-adjusted capitalization for the rating category and ample balance sheet liquidity in the form of cash, fed funds and available for sale securities, Fitch said.

Rating constraints include the highly competitive small business credit card sector and the risks associated with a lack of revenue diversity and a monoline business focus, the agency said.

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