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Press release from PR Newswire

National Credit Default Rates Moved Up in Q4 2012 According to the S&P/Experian Consumer Credit Default Indices

Tuesday, January 15, 2013

National Credit Default Rates Moved Up in Q4 2012 According to the S&P/Experian Consumer Credit Default Indices09:45 EST Tuesday, January 15, 2013All Five Cities Saw Default Rates Rise in December 2012NEW YORK, Jan. 15, 2013 /PRNewswire/ -- Data through December 2012, released today by S&P Dow Jones Indices and Experian for the S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults, showed an increase in national default rates during the month. After hitting a post-recession low of 1.46% in September 2012, the national composite increased for three consecutive months, posting 1.55% in October, 1.64% in November and reaching 1.72% in December. The first mortgage default rate showed the same pattern; it increased from its post-recession low of 1.36% in September, to 1.47% in October, 1.58% in November, reaching 1.68% in December. The second mortgage went up to 0.69% in December from its historic low of 0.62% posted last month. Auto loan default rates remain flat at 1.09% since November. Bank card default rate hit the lowest post-recession rate of 3.53% in December; it was 3.58% in November. "Overall, 2012 showed improvement in consumer credit quality," says David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Dow Jones Indices. "However, fourth quarter consumer default rates reversed some of the recent declines and pushed the composite default rate above its level of last May. The principal culprits were first and second mortgages. Default rates for auto loans were roughly stable over the year and default rates for bank cards continued to drop. All loan types remain below their respective levels a year ago. "The national composite rate was 1.72% in December, eight basis points above the November rate and 26 basis points above September's post-recession low. It was primarily driven by the first mortgage rate at 1.68% in December, ten basis points above the previous month's rate and 32 basis points above September's post-recession low. The second mortgage rate rose seven basis points from last month's historic low, auto loans remained flat, and bank cards were down five basis points to a new post-recession low of 3.53%. Bank card default rate moved down for eight consecutive months, it was 96 basis points down from its April 2012 level. "All five cities we cover showed increases in their default rates in December. The major increases were Miami, up 41 basis points, Chicago up 27, and Los Angeles up 24 basis points. New York and Dallas were marginally higher by four and one basis points. Miami had the highest default rate at 3.07% and Dallas - the lowest at 1.26%. All five cities remain below default rates they posted a year ago, in December 2011."The table on the next page summarizes the December 2012 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 IndicesNational Indices IndexDecember 2012Index LevelNovember 2012Index LevelDecember 2011Index Level Composite1.721.642.24 First Mortgage1.681.582.19 Second Mortgage0.690.621.33 Bank Card3.533.584.60 Auto Loans1.091.091.27                             Source: S&P/Experian Consumer Credit Default Indices                             Data through December 2012The table below provides the S&P/Experian Consumer Default Composite Indices for the five MSAs:MetropolitanStatistical AreaDecember 2012 Index LevelNovember 2012 Index LevelDecember 2011 Index LevelNew York1.511.472.13Chicago2.121.852.84Dallas1.261.251.56Los Angeles1.841.602.54Miami3.072.664.73                             Source: S&P/Experian Consumer Credit Default Indices                             Data through December 2012About S&P Dow Jones Indices S&P Dow Jones Indices LLC, a subsidiary of The McGraw-Hill Companies, Inc. is the world's largest, global resource for index-based concepts, data and research. Home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial AverageSM, S&P Dow Jones Indices LLC has over 115 years of experience constructing innovative and transparent solutions that fulfill the needs of institutional and retail investors. More assets are invested in products based upon our indices than any other provider in the world. With over 830,000 indices covering a wide range of assets classes across the globe, S&P Dow Jones Indices LLC defines the way investors measure and trade the markets. To learn more about our company, please visit www.spdji.com. It is not possible to invest directly in an index. S&P Dow Jones Indices LLC, SPFS, Dow Jones, and their respective affiliates, parents, subsidiaries, directors, officers, shareholders, employees and agents (collectively "S&P Dow Jones Indices") does not sponsor, endorse, sell, or promote any investment fund or other vehicle that is offered by third parties and that seeks to provide an investment return based on the returns of any S&P Dow Jones Indices index. This document does not constitute an offer of services in jurisdictions where S&P Dow Jones Indices does not have the necessary licenses. S&P Dow Jones Indices LLC receives compensation in connection with licensing its indices to third parties.STANDARD & POOR'S and S&P are registered trademarks of Standard & Poor's Financial Services LLC ("SPFS").  "Dow Jones" is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones").About Experian Experian is the leading global information services company, providing data and analytical tools to clients in more than 80 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 31 March 2011 was $4.2 billion. Experian employs approximately 15,000 people in 41 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and Sao Paulo, Brazil.For more information, visit http://www.experianplc.com.Experian and the Experian marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the property of their respective owners.For more information: Dave Guarino Communications S&P Dow Jones Indices dave_guarino@spdji.com 201-755-5334David Blitzer Managing Director and Chairman of the Index Committee S&P Dow Jones Indices david_blitzer@spdji.com 917-376-1204Susan Henson Experian Public Relations Susan.henson@experian.com 714-830-5129Jointly developed by S&P Dow Jones Indices LLC 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 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. 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