NEW YORK — After establishing a new record low in June,
analysts from S&P Dow Jones Indices and Experian noticed the auto loan
default rate ticked up slightly in July.

According to S&P/Experian Consumer Credit Default
Indices, the auto loan reading edged up to 1.03 percent, rising from that
record-setting mark of 1.00 percent set a month earlier. Last July, analysts
indicated the auto loan default rate was just 1.01 percent.

Like the auto loan default metric, analysts determined the national
composite reading moved higher, too. The comprehensive measure of changes in
consumer credit defaults showed increases in national default rates during July
to 1.35 percent, up from 1.34 percent in June.

While moving slightly higher sequentially, S&P and Experian
pointed out that the composite rate stood much higher a year ago. Last July, it
came in at 1.51 percent.

Turning back to July data, analysts mentioned the first
mortgage default rate was 1.25 percent, up from 1.23 percent rate posted in
June.

July's second mortgage remained flat since June at its
historic low of 0.54 percent.

Meanwhile, the bank card rate hit a new low of 3.22 percent
in July, down from 3.41 percent in June.

"Consumer credit quality remains healthy," said David Blitzer,
managing director and chairman of the index committee for S&P Dow Jones
Indices.

"The first mortgage was 1.25 percent in July, only two basis
points up from its recent low posted last month," Blitzer continued. "Across
all other categories default rates remain at or marginally above their historic
lows.

"The second mortgage default rate remained flat at a new low
of 0.54 percent reached last month," he went on to say. "Bank card default rate
hit a new low of 3.22 percent, 19 basis points down from June and 41 basis
points down from May level. Auto loan default rate was 1.03 percent, three
basis points up from its historic low posted last month.

"All loan types remain below their respective levels a year
ago," Blitzer added.

Looking at the five largest U.S. cities analysts track for
this index, Blitzer noted that all five cities saw increased default rates in
July.

Miami's default rate increased the most in July, climbing 31
basis points from June to come in at 2.06 percent. Chicago recorded a 16 basis-point
jump month-over-month to 1.75 percent.

"New York increased by nine basis points, Dallas by five and
Los Angeles by three basis points," Blitzer said. "All five cities remain below
default rates they posted a year ago in July 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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