American Express Upgraded to A+ Rating

Rating Upgrade Overview

Fitch Ratings upgraded American Express Company's long‑term issuer default rating from A to A+ and raised the viability rating for both American Express and its primary banking subsidiary, American Express National Bank, to a+ with a stable outlook. The agency highlighted the firm’s affluent customer base, fee‑centric earnings model, and robust balance‑sheet fundamentals, underpinned by its unique closed‑loop payments network that captures broader payment economics than conventional card‑issuing peers.

Financial Performance Highlights

Since 2022, American Express has delivered an 11% compound annual revenue growth rate, with roughly three‑quarters of its top‑line derived from card fees, merchant discounts and processing services, insulating it from interest‑rate volatility. The company maintains industry‑leading operating profitability and superior asset quality, with net charge‑offs consistently at the low end of its peer group despite accelerated loan expansion. Return on equity exceeds 30%, reflecting strong capital generation capacity.

Capital Structure and Liquidity

The rating action notes American Express’s flexible variable‑cost framework and strong liquidity buffers, which Fitch expects will readily absorb normalising consumer‑credit trends. The firm recently transitioned into Category II bank‑holding‑company oversight due to expanding cross‑jurisdictional activity, further underscoring its robust risk‑management standards.