S&P/Experian Credit Default Indices September Sees Increases in all Credit Line Default Rates Except Autos

Highest Increase in Default Rates for New York since November 2010

Oct 18, 2011, 09:23 ET from S&P Indices

NEW YORK, Oct. 18, 2011 /PRNewswire/ -- Data through September 2011, released today by S&P Indices and Experian for the S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults, showed the only decrease in credit line default rates in September was for auto loans, which fell to 1.29% from August's 1.31%. First and second mortgage default rates increased slightly; first mortgages went from 1.92% in August to 1.99% in September, and second mortgages from 1.27% to 1.32%, respectively. Bank card default rate showed the largest basis point increase, from 5.26% in August to 5.36% in September.

"While this is only one month of data, we have not seen so many increases in default rates in about a year or more," says David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Indices. "For most of the past three years, consumer credit default rates have been declining across both loan types and regions. September's report was the first time we saw increases in four of five regions, three of four loan types and the composite, which rose from 2.04% to 2.10%. Bank cards rose to 5.36% in September from 5.26% in August, which is a bit of a concern. First and second mortgage default rates also rose during the month. This is the first time we have seen the rates go up for first mortgages since November 2010. Looking at the regions, New York saw the largest increase, moving from 1.80% to 2.01%. Given the fragile state of both the economy and consumer confidence can, we will have to closely monitor these data over the next few months to determine if September was just a temporary blip or the reversal of the recent trend."

Among the five major Metropolitan Statistical Areas (MSAs) reported in this release, New York showed its highest default rates since April 2011, increasing from 1.80% in August to 2.01% in September. Chicago, Los Angeles and Miami increased moderately to 2.47%, 2.12% and 4.59% in September, from 2.43%, 2.07% and 4.52% in August, respectively. Dallas was the only MSA where default rates fell, from 1.51% in August to 1.33% in September.

The table below summarizes the September 2011 results for the S&P/Experian Credit Default Indices. These data are not seasonally adjusted and are not subject to revision.


S&P/Experian Consumer Credit Default Indices

National Indices

Index

September 2011

Index Level

August 2011

Index Levels

September 2010

Index Levels

Composite

2.10

2.04

3.14

First Mortgage

1.99

1.92

3.02

Second Mortgage

1.32

1.27

2.14

Bank Card

5.36

5.26

7.04

Auto Loans

1.29

1.31

2.04

Source: S&P/Experian Consumer Credit Default Indices

Data through September 2011




The table below provides the S&P/Experian Consumer Default Composite Indices for the five MSAs:


Metropolitan Statistical Area

September 2011

Index Level

August 2011

Index Levels

September 2010

Index Levels

New York

2.01

1.80

3.20

Chicago

2.47

2.43

3.56

Dallas

1.33

1.51

2.28

Los Angeles

2.12

2.07

3.48

Miami

4.59

4.52

7.61

Source: S&P/Experian Consumer Credit Default Indices

Data through September 2011




Jointly developed by S&P Indices and Experian, the S&P/Experian Consumer Credit Default Indices are published on the third Tuesday of each month at 9:00 am ET. They are constructed to accurately track the default experience of consumer balances in four key loan categories: auto, bankcard, first mortgage lien and second mortgage lien. The Indices are calculated based on data extracted from Experian's consumer credit database. This database is populated with individual consumer loan and payment data submitted by lenders to Experian every month. Experian's base of data contributors includes leading banks and mortgage companies, and covers approximately $11 trillion in outstanding loans sourced from 11,500 lenders.

For more information, please visit: www.consumercreditindices.standardandpoors.com.

About S&P Indices
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Standard & Poor's does not sponsor, endorse, sell or promote any S&P index-based investment product. The S&P/Experian Consumer Credit Default Indices are products of S&P Indices, which operates independently of Standard & Poor's Ratings Group. Standard & Poor's Ratings Group plays no role in the compilation, distribution or licensing of the Indices.

About Experian Experian is the leading global information services company, providing data and analytical tools to clients in more than 90 countries. The company helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score and protect against identity theft.

Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended March 31, 2010, was $3.9 billion. Experian employs approximately 15,000 people in 40 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; Costa Mesa, California; and Sao Paulo, Brazil.

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For more information:

Dave Guarino

S&P Indices

Communications

212-438-1471

Dave_Guarino@standardandpoors.com

David Blitzer

S&P Indices

Chairman of the Index Committee

212-438-3907

david_blitzer@standardandpoors.com

Susan Henson

Experian Public Relations

714-830-5129

Susan.henson@experian.com

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