NEW YORK — Auto loan default rates moved up marginally in
February compared to the previous month, but readings according to S&P Dow
Jones Indices and Experian still fell below year-ago levels.

The February auto loan default rate came in at 1.11 percent,
up just slightly from January's level of 1.10 percent. A year earlier, the rate
stood at 1.22 percent.

Overall, analysts gave the latest S&P/Experian Consumer
Credit Default Indices an upbeat assessment. Three categories, including the
national composite rate, ticked lower in February, including:

—National composite: 1.55 percent in February, down from
1.63 percent in January and from 2.09 percent a year ago

—First mortgage: 1.48 percent in February, down from 1.58
percent in January and 2.02 percent a year ago.

—Bank card: 3.37 percent in February down from 3.41 percent
in January and 4.41 percent a year ago.

Like auto loans, analysts found that second mortgages also
edged slightly higher in February as compared to the previous month but still
settled well below year-ago readings. Second mortgages ticked up to 0.71
percent February, up from January's level of 0.69 percent but down from last
year's level of 1.20 percent.

"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 and bank card default rates moved down.
The second mortgage and auto loans were marginally up in February. All loan
types remain below their respective levels a year ago," Blitzer continued.

"These trends are consistent with other economic news —
improvements in employment and overall economic activity and continuing gains
in housing," Blitzer went on to say. "Additionally, foreclosure activity continues
to decline even though it remains at elevated levels compared to the period
before the financial crisis."

Looking at the top five metropolitan areas analysts consider
for this monthly report, three of the five cities showed decreases in their
default rates in February.

New York was down by 12 basis points to 1.41 percent. The
Big Apple stood at 2.04 percent in February of last year.

Los Angeles dropped by 18 basis points in February to settle
at 1.63 percent after coming in at 1.87 percent a year earlier.

Miami's rate decreased the most, falling by 24 basis points
in February to 3.21 percent. A year ago, Miami's level was still above 4.5
percent.

While still below year-ago readings, Chicago and Dallas were
up marginally in February, rising 1 and 7 basis points, respectively. Chicago's
rate was 2.08 percent in February after being 2.71 percent a year ago while
Dallas' rate was 1.26 percent, the lowest among these five cities.

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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