National Credit Default rates continued their upward trend in December 2014 according to the S&P/Experian Consumer Credit Default Indices

New York, January 20, 2015 –Data through December 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, continued to show an increase in default rates. The national composite posted a default rate of 1.11% in December, up four basis points from November 2014.  The first mortgage default rate rose five basis points to 1.02% in December, its largest increase since September 2013. The second mortgage default increased by 11 basis points to 0.59%. The bank card default rate also increased from its historic low in November, up six basis points to 2.65%. Only the auto loan default rate decreased, down three basis points to 1.02%.

“December was the fifth consecutive month with increasing national consumer credit default rates,” says David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Dow Jones Indices. “Increases also occurred in some recent months in mortgages and auto loans. While the economy is strengthening and consumer spending is gaining, wages have shown little growth. The large drop in oil prices benefits consumers’ disposable income and should limit consumers’ financial stress. Default rates remain very low but could be a cause for concern if the rising trend gains strength.

“Chicago, Dallas, New York, and Los Angeles reported default rate increases in December. Across these cities, there is a seasonal pattern with December showing larger than typical increases in default rates, probably associated with holiday shopping and delayed payments. New York reported the largest increase, up seven basis points from last month’s historic low, to 1.05%. Chicago also increased from its historical low in November, up five basis points to 1.16%, and Los Angeles increased six basis points to 0.86%. Only Miami reported a rate decrease, down 12 basis points to 1.34%. Despite the significant increases, all five cities – Chicago, Dallas, Los Angeles, Miami and New York – still remain below rates seen a year ago.”

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

Source: S&P/Experian Consumer Credit Default Indices

Data through December 2014

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

Source: S&P/Experian Consumer Credit Default Indices

Data through December 2014

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About Experian

We are the leading global information services company, providing data and analytical tools to our clients around the world. We help businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. We also help people to check their credit report and credit score, and protect against identity theft.  In 2014, we were named by Forbes magazine as one of the ‘World’s Most Innovative Companies’.

We employ approximately 16,000 people in 39 countries and our corporate headquarters are in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.

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, 2014, was US$4.8 billion.

To find out more about our company, please visit http://www.experianplc.com or watch our documentary, ‘Inside Experian’

For more information:

Dave Guarino

Communications

S&P Dow Jones Indices

dave.guarino@spdji.com

(+1) 212-438-1471

David Blitzer

Managing Director and Chairman of the Index Committee

S&P Dow Jones Indices

david.blitzer@spdji.com

(+1) 212-438-3907

Jordan Takeyama

Experian Public Relations

jordan.takeyama@experian.com

(+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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