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NEW YORK — While the composite rate of the S&P/Experian
Consumer Credit Default Indices ticked up for the third consecutive month, auto
loan default rates stayed flat in December, halting a rising trend that lasted
three months.

According to S&P Dow Jones Indices and Experian, the
auto loan default rate remained at 1.09 percent, the same level as November.

Meanwhile, after hitting a post-recession low of 1.46
percent in September, the national composite rate — a comprehensive measure of
changes in consumer credit defaults — increased for third month in a row. The
December reading came in at 1.72 percent, following levels of 1.64 percent in
November and 1.55 percent in October.

As the streak of climbing auto loan default rates stopped,
analysts said the first mortgage default rate showed the same pattern as the
composite measure.

First mortgage defaults increased from its post-recession
low of 1.36 percent in September to 1.47 percent in October, 1.58 percent in
November before reaching 1.68 percent in December.

The latest report also mentioned the second mortgage rate
went up to 0.69 percent in December from its historic low of 0.62 percent
posted during the previous month.

Analysts added bank card default rate hit the lowest
post-recession rate of 3.53 percent in December as it was 3.58 percent in
November.

"Overall, 2012 showed improvement in consumer credit
quality," said David Blitzer, managing director and chairman of the index committee
for S&P Dow Jones Indices.

"However, fourth quarter consumer default rates reversed
some of the recent declines and pushed the composite default rate above its
level of last May," Blitzer continued. "The principal culprits were first and
second mortgages. Default rates for auto loans were roughly stable over the
year and default rates for bank cards continued to drop. All loan types remain
below their respective levels a year ago."

Looking at the largest U.S. metro areas, all five cities analysts
cover in this report showed increases in default rates in December.

The major increases were Miami (up 41 basis points to 3.07
percent), Chicago (up 27 basis points to 2.12 percent) and Los Angeles (up 24
basis points to 1.04 percent. New York and Dallas were marginally higher by
four and one basis points respectively as the Texas city kept the lowest rate
among the five at 1.26 percent.

Analysts added all five cities remain below default rates
they posted a year ago in December 2011.

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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