NEW YORK — The auto loan portion of the latest S&P/Experian
Consumer Credit Default Indices dropped to the lowest level ever recorded by
S&P Dow Jones Indices and Experian.

In June, analysts discovered auto loan defaults dropped to
1.00 percent, down from 1.04 percent, which was the level noticed both in May
and in June of last year.

S&P and Experian also determined that both the national
composite and the first mortgage default rates hit new post-recession lows.

The national composite — the comprehensive measure of
changes in consumer credit defaults — came in at 1.34 percent in June, down from
1.42 percent in May.

The first mortgage was 1.23 percent in June, down from 1.31
percent posted during the month.

Analysts also highlighted that the second mortgage rate
settled at 0.54 percent in June, the lowest level in the history of the index.
It was down from 0.60 percent posted in May.

The firms indicated the bank card rate was 3.41 percent in
June versus 3.63 percent in May

"Consumers' financial condition continues to improve," said David
Blitzer, managing director and chairman of the index committee for S&P Dow
Jones Indices.

"Across all categories default rates are falling," Blitzer
continued. "The first mortgage hit a new post-recession low of 1.23 percent in
June. Bank card default rate was 3.41 percent, 22 basis points down from last
month. The second mortgage and auto loan default rates hit new lows of 0.54
percent and 1.00 percent since the indices began in 2004.

"All loan types remain below their respective levels a year
ago," he went on to say.

Looking at the top five metropolitan areas analysts review
for this report, two cities dropped in June. New York dipped from 2.04 percent
in May to 1.53 percent in June while Miami edged down to 1.75 percent in June from
1.88 percent a month earlier.

"Two of the five cities, New York and Miami, saw decreased
default rates in June. New York dropped 61 basis points and Miami was down 13
basis points this month. Miami was at a post-recession low of 1.75 percent,"
Blitzer said.

"Chicago, Dallas and Los Angeles were slightly up by 4, 7
and 8 basis points, respectively," he continued. "All five cities have default
rates at or less than 1.75 percent and remain below default rates they posted a
year ago, in June 2012."

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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