National Credit Default Rates Fell in February 2014 According to the S&P/Experian Consumer Credit Default Indices

NEW YORK, March 18, 2014 /PRNewswire/ -- Data through February 2014, 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 decline in national default rates during the month. All of the five national indices showed a drop-off for the month of February. The national composite posted 1.30% in February, its lowest rate since August 2006. The first mortgage default rate was 1.23% in February, down from 1.26% last month. The second mortgage posted 0.69% in February, down from 0.72% in January. The auto loan default rate was 1.03% in February, down from 1.11% in the previous month. The bank card rate of 2.83% is a new historic low beating out the previous low of 2.97% set in October 2013.

"Despite some mixed economic reports and severe weather, consumer credit default rates continue to decline" says David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Dow Jones Indices.  Across all categories default rates improved.  Other data confirm the improving trends. Retail sales revived in February, purchase of services rose 0.9 %, the largest jump in over 10 years and personal income is resilient as incomes rose by 0.3%. Consumer default rates have stabilized at levels similar to those seen before the financial crisis.

"Four out of the five cities saw default rate decreases. Dallas was the only city to see an increase in default rates; it posted 1.16%, 2 basis points higher than last month's level. Miami recorded the largest downturn; it posted 2.23%, 38 basis points lower than January's level. Los Angeles continued its downwards trend, recording 1.05%, the lowest default rate seen since July 2006. Miami maintained the highest default rate and Los Angeles had the lowest.  Four cities – Chicago, Dallas, Los Angeles and Miami - remain below default rates they posted a year ago, in February 2013."

The table below summarizes the February 2014 results for the S&P/Experian Credit Default Indices. These data are not seasonally adjusted and are not subject to revision.                       

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

About S&P Dow Jones Indices
S&P Dow Jones Indices LLC, a part of McGraw Hill Financial, 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 Average™, S&P Dow Jones Indices LLC has over 115 years of experience constructing innovative and transparent solutions that fulfill the needs of 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 asset 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. 

Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC, a part of McGraw Hill Financial. Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones").  These trademarks have been licensed to S&P Dow Jones Indices LLC. It is not possible to invest directly in an index. S&P Dow Jones Indices LLC, Dow Jones, S&P and their respective affiliates (collectively "S&P Dow Jones Indices") do not sponsor, endorse, sell, or promote any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any 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 receives compensation in connection with licensing its indices to third parties.

About Experian
Experian is the leading global information services company, providing data and analytical tools to clients around the world. The Group 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 2013 was US$4.7 billion. Experian employs approximately 17,000 people in 40 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.

For more information, visit http://www.experianplc.com.

For more information:

Dave Guarino
Communications
S&P Dow Jones Indices
[email protected]
(+1) 212-438-1471

David Blitzer
Managing Director and Chairman of the Index Committee
S&P Dow Jones Indices
[email protected]
(+1) 212-438-3907

Jordan Takeyama
Experian Public Relations
[email protected]
(+1) 714-830-7561

Jointly 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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Without limiting the foregoing, the Indices are calculated by S&P Dow Jones Indices and its third party licensors based on a sampling of data reported to S&P Dow Jones Indices or its third party licensor from third parties, and neither S&P Dow Jones Indices nor its third party licensors verify the adequacy, accuracy, timeliness or completeness of such data.  Neither S&P Dow Jones Indices nor its third party licensor guarantee that such data and/or the sampling thereof shall be representative of the rate of actual consumer credit default or of any other attribute or activity. 

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SOURCE S&P Dow Jones Indices

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