S&P/Experian: Auto Loan Default Index Opens 2013 Marginally Higher

NEW YORK — Despite marginal deterioration in January, the
auto loan portion of the S&P/Experian Consumer Credit Default Indices
showed levels still better than a year ago.

S&P and Experian reported Tuesday that auto loan default
rates increased in January to 1.10 percent, up from the December level of 1.09
percent.

However, the latest reading still is lower than a year ago. To
begin 2012, the rate stood at 1,27 percent.

The national composite showing a comprehensive measure of
changes in consumer credit defaults came in at 1.63 percent in January, down
from 1.72 percent in December. Like the auto reading, the composite index
settled well below what analysts spotted last January when it was 2.16 percent.

The other credit segments analysts track by and large showed
positive trends.

The first mortgage default rate moved down to 1.58 percent
in January from 1.68 percent in December. The second mortgage rate was
unchanged at 0.69 percent since December. The bank card default rate hit the
lowest post-recession pace of 3.41 percent in January as it was 3.53 percent in
December.

"The beginning of 2013 continued the positive trend in
consumer credit quality that we witnessed in 2012," said David Blitzer, managing
director and chairman of the index committee for S&P Dow Jones Indices.

"The first mortgage and bank card default rates moved down,
the second mortgage remained flat and auto loans were marginally up in January.
All loan types remain below their respective levels a year ago," Blizter
continued.

Looking at the top five metropolitan areas, three
of the five cities analysts cover showed decreases in their default rates in
January. Here is the rundown:

"All five cities remain below default rates they posted a
year ago in January 2012," Blitzer said.

Jointly developed by S&P Indices and Experian, Blitzer
reiterated the S&P/Experian Consumer Credit Default Indices are published
monthly with the intent 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.

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