National Credit Default Rates Slightly Increase in September 2014 According to the S&P/Experian Consumer Credit Default Indices

NEW YORK, Oct. 21, 2014 /PRNewswire/ -- Data through September 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 an uptick in default rates.  The national composite posted 1.04% in September, up three basis points from July 2014's historical low.  For the second consecutive month, the first mortgage default rate rose, to 0.93% in September.  The second mortgage default rate rose one basis point to 0.52%, which was its first increase since April 2014. The bank card rate decreased for the third consecutive month, declining by 10 basis points to 2.63%.

"Default rates for bank cards reversed an increase seen in the first half of 2014 while defaults on first mortgages and auto loans appear to have bottomed out over the summer. However, none of these movements are very large," says David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Dow Jones Indices.  "Despite their slight increase, default rates are still near the lows seen before the 2007-2009 recession and financial crisis."

"Chicago, Dallas, New York and Miami all reported rate decreases, with Miami posting a default rate of 1.21%, its lowest rate since June 2006 and New York posting a default rate of 1.05%, its lowest since September 2005.  Los Angeles for the second consecutive month posted a rate increase of 0.77%, up 11 basis points from its historical low in July 2014.  All five cities – Chicago, Dallas, Los Angeles, Miami and New York – remain below default rates seen a year ago."

The table below summarizes the September 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:

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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 2014 was US$4.8 billion. Experian employs approximately 16,000 people in 39 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.

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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