Fitch upgrades American Express rating to 'A+'

Fitch Ratings upgraded the long-term issuer default rating of American Express Company to 'A+' from 'A'. The credit rating agency also raised the viability ratings for both the parent firm and its primary banking subsidiary, American Express National Bank, to 'a+' with a stable outlook.

The agency cited the payments company's affluent customer base, strong balance sheet fundamentals, and its closed-loop network. Fitch pointed out that American Express has delivered an 11% compound annual revenue growth rate since 2022. Nearly three-quarters of its top line comes from card fees, merchant discounts, and processing services, which insulates earnings from interest-rate volatility.

Fitch highlighted that net charge-offs have remained at the low end of the company's peer group during a period of loan expansion. The agency also noted capital generation underscored by a return on equity exceeding 30%. While American Express recently moved into Category II bank holding company oversight due to international activity, Fitch expects its liquidity buffers and variable-cost framework to handle credit normalization.