Fitch: Advanta view stable

Fitch Ratings said it affirmed Advanta Corp. and Advanta Bank Corp.'s long-term issuer default rating at BB- and short-term issuer default rating at B. Advanta's senior unsecured rating was affirmed at BB- and Advanta Bank's long-term deposits were affirmed at BB.

Advanta Capital Trust I's trust preferred stock rating was affirmed at B.

The outlook was revised to stable from positive.

Fitch said the affirmation reflects the company's solid position in the small business credit card industry, improved asset quality relative to historical levels, consistent profitability metrics and adequate 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 outlook revision reflects the recent deterioration in portfolio credit quality, resulting from higher delinquency roll-rates following the 2005 change in bankruptcy legislation and uncertain capital markets, which could disrupt funding plans for Advanta, according to the agency.

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