American Express Changes Cards Policies
Well, I guess I was due to feel the effects of American Express’ problems. As of this morning, I received an email stating that my platinum business card was going to have a credit limit, which I’ve never had before, effective immediately. Talk about a major come down and shock.
Or should it have been a shock? After all, Fitch Ratings (Fitch provides issuer and bond ratings, research and surveillance on banks, and commentary on other financial issues) took a more pessimistic view of American Express Co.’s ratings, saying the company’s earnings are likely to fall as more cardholders fail to pay their bills and others charge less amid the recession. Fitch changed American Express’s ratings outlook to negative, which of course isn’t goo at all.
Standard & Poor’s Ratings Service and Moody’s Investors Services put American Express on watch for downgrade, a more serious move than Fitch’s outlook change, weeks ago. Man, how the heck did I miss this bit of information?
And yet, American Express’ stock price has climbed more than $20 since it hit a low in March, though it’s still way off its figure from 2008. Once again, how does a company’s stock climb when bad news keeps coming up about it? Well, supposedly it’s because they said growth in bad loans slowed; isn’t that an oxymoron of sorts? Because the debt has slowed, even though it’s still accumulating bad debt, that means they’re improving, and the economy is improving? And if that’s the case, why pick on my card?
No matter; it just means I’ll have to find other ways to help sustain my business during these slow days. And at least I still have my business, as Sony announced a $387 billion dollar loss and the elimination of 2,000 jobs; ouch!