Fitch lifts Advanta view to positive

Fitch ratings said it revised the outlook of Advanta Corp. and Advanta Bank Corp. to positive from stable and affirmed the BB- long-term issuer default ratings and B short-term ratings of both companies, Advanta's BB- senior unsecured rating, Advanta Bank's BB long-term deposit rating and Advanta Capital Trust I's B trust preferred stock rating.

The agency said the affirmation reflects Advanta's solid position in the small business credit card market, improved asset quality, consistent profitability metrics and stable risk-adjusted capitalization, offset by growing competition in the small business credit card sector and the risks associated with a lack of revenue diversity and its mono-line business focus.

The positive outlook reflects the company's improved credit quality metrics since it began focusing on a higher-quality customer base, operating consistency as it has increasingly leveraged the business model and the easing of litigation risk with the settlement of the Chase lawsuit, Fitch said.

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