NEW YORK — Coming off a historic low, the auto loan default
rate ticked higher last month, according to August data reported by S&P Dow
Jones Indices and Experian for the S&P/Experian Consumer Credit Default
Indices.

The auto rate edged up to 1.09 percent in August, up from
July's rate of 1.01 percent.

Meanwhile, analysts determined most loan types saw a
decrease in default rates including the national composite, which is now down
for eight consecutive months.

In fact, S&P and Experian pointed out four of the five
loan types posted their lowest rate since the end of the 2007/2009 recession.

The bank card default rate fell the most in August, dipping
to 3.77 percent from July's reading of 3.83 percent. The first mortgage default
rate decreased slightly from 1.41 percent in July to 1.40 percent in August.

At 0.72 percent, analysts said the second mortgage default
rate fell to the lowest level in its eight-plus year history.

Furthermore, S&P and Experian mentioned the composite
index showed a post-recession low of 1.50 percent, slightly below July's 1.51
percent.

"While continuing to fall, most of the August changes in
default rates were small compared to what we saw in the first half of the year,"
explained David Blitzer, managing director and chairman of the index committee
for S&P Dow Jones Indices.

"As the consumers' financial condition continues to improve
their credit default rates showed small changes from July to August, in most
cases the trend was either down or flat," Blitzer continued.

"The auto loan rate rose eight basis points in August to
1.09 percent, but this was from July's eight-plus year historic low," he reiterated.
"Bank card, first and second mortgage and composite default rates hit new
post-recession lows.

"The first mortgage default rate has been down or flat for
eight consecutive months, a good sign for the housing market," Blitzer went on
to say. "Second mortgage default rates were down in all but one of those same
months. Bank card default rates fell the most in August, down six basis points
to 3.77 percent, its lowest rate since February 2007, more than five years ago.

Shifting to a look at the data by geography, analysts
discovered Miami's default rate rose from July's post-recession low of 2.39
percent to 2.62 percent.

The rates in Dallas and Chicago also moved higher in August
to 1.07 percent and 1.92 percent, respectively.

"This was the second month that default rates rose in
Dallas, but 1.07 percent is still the lowest of the five cities we publish," Blitzer
noted.

Los Angeles was the only city where the default rates fell
in August. The reading ticked down to 1.60 percent versus 1.67 percent in July.
The level established a post-recession low for that city.

Finally, analysts mentioned New York's remained flat at its post-recession
low of 1.49 percent.

"While there has been a bit of volatility among loan types
and cities, the basic trend has not changed," Blitzer emphasized. "Consumers
are continuing to repair their balance sheets, as evidenced by diminishing
default rates.

"For the housing market, there are still a substantial
number of loans outstanding that defaulted in the past and that segment of the
market is still of concern," he added. "But for 2012, the drop in mortgage
default rates is a good sign for the housing market and the consumer."

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.