EXPGY Experian Plc (QX)

NEW YORK, June 16, 2015 /PRNewswire/ -- Data through May 2015, released today by S&P Dow Jones Indices and Experian for the S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults, continued its downward trend in default rates. Historical lows are reported for four of the five national indices. The composite index posted its second consecutive historical low of 0.88% in May, a decrease of nine basis points. The first mortgage default rate reported a historical low, down nine basis points to 0.74%. The second mortgage default rate also posted a second consecutive historical low of 0.42%, down one basis point from the previous month. The auto loan default rate reported a historical low of 0.86%, a decrease of eight basis points. The bank card default rate reported its first decrease since January 2015 with a rate of 2.98%, a decrease of 20 basis points, its largest reported decrease since October 2013.

Four of the five major cities also continued their downward trend, reporting negative month-over-month default rate results in May. Dallas led the way, reporting a historical low of 0.70%, down 20 basis points from the previous month. New York posted its second consecutive decrease, reporting a historical low of 0.95%, a decrease of 15 basis points. Miami also reported its second consecutive decrease, down three basis points to a reported rate of 1.17%. Chicago reported its third consecutive decrease, posting a default rate of 1.00%, down five basis points from the previous month. Los Angeles reported the only rate increase, an increase of five basis points to 0.95%, its third consecutive monthly increase.

"Consumer credit default rates are below pre-crisis levels, at new lows and continue to drift down," says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. "These low levels should not come as a surprise: interest rates haven't turned up, consumer debt service as a proportion of household income is close to its record low, and the Federal Reserve reported that consumer wealth was at a peak in the first quarter of 2015. Nor should one assume that debt levels and defaults are low because no one is spending; on the contrary, May light vehicle sales were the highest since July 2005 and retail sales jumped. The economy looks good, consumers are spending and credit usage is rising. The combination of low debt service and economic expansion should ease worries about the fallout some fear when the Federal Reserve boosts interest rates.

"Two of the five cities – New York and Dallas – reported their lowest mortgage default rates since the series started in April 2004; the other three cities reported post-recession lows. During the housing collapse, Miami was one of the hardest hit cities in the country; Los Angeles also experienced a sharp rise in defaults and foreclosures. These figures are another indication that housing is recovering. Moreover, other data on financial difficulties confirm that foreclosures are declining and consumers' capability and willingness to borrow are improving."

The table below summarizes the May 2015 results for the S&P/Experian Credit Default Indices. These data are not seasonally adjusted and are not subject to revision.

The table below provides the S&P/Experian Consumer Default Composite Indices for the five MSAs:

About S&P Dow Jones Indices
S&P Dow Jones Indices LLC, a part of McGraw Hill Financial, is the world's largest, global resource for index-based concepts, data and research. Home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average™, S&P Dow Jones Indices LLC has over 115 years of experience constructing innovative and transparent solutions that fulfill the needs of investors. More assets are invested in products based upon our indices than any other provider in the world. With over 1,000,000 indices covering a wide range of asset classes across the globe, S&P Dow Jones Indices LLC defines the way investors measure and trade the markets. To learn more about our company, please visit www.spdji.com. 

Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC, a part of McGraw Hill Financial. Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones").  These trademarks have been licensed to S&P Dow Jones Indices LLC. It is not possible to invest directly in an index. S&P Dow Jones Indices LLC, Dow Jones, S&P and their respective affiliates (collectively "S&P Dow Jones Indices") do not sponsor, endorse, sell, or promote any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. This document does not constitute an offer of services in jurisdictions where S&P Dow Jones Indices does not have the necessary licenses. S&P Dow Jones Indices receives compensation in connection with licensing its indices to third parties.

About Experian
We are the leading global information services company, providing data and analytical tools to our clients around the world. We help businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. We also help people to check their credit report and credit score, and protect against identity theft. In 2014, we were named by Forbes magazine as one of the "World's Most Innovative Companies."

We employ approximately 16,000 people in 39 countries and our corporate headquarters are in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and Sao Paulo, Brazil.

Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended March 31, 2014, was US$4.8 billion.

To find out more about our company, please visit http://www.experianplc.com or watch our documentary, "Inside Experian."

For more information:
Dave Guarino
Communications
S&P Dow Jones Indices
dave.guarino@spdji.com
(+1) 212-438-1471

David Blitzer
Managing Director and Chairman of the Index Committee
S&P Dow Jones Indices
david.blitzer@spdji.com
(+1) 212-438-3907

Jordan Takeyama
Experian Public Relations
jordan.takeyama@experian.com
(+1) 714-830-7561

Jointly developed by S&P Dow Jones Indices LLC and Experian, the S&P/Experian Consumer Credit Default Indices are published on the third Tuesday of each month at 9:00 am ET. They are constructed to 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.

For more information, please visit: www.consumercreditindices.standardandpoors.com.  

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Without limiting the foregoing, the Indices are calculated by S&P Dow Jones Indices and its third party licensors based on a sampling of data reported to S&P Dow Jones Indices or its third party licensor from third parties, and neither S&P Dow Jones Indices nor its third party licensors verify the adequacy, accuracy, timeliness or completeness of such data.  Neither S&P Dow Jones Indices nor its third party licensor guarantee that such data and/or the sampling thereof shall be representative of the rate of actual consumer credit default or of any other attribute or activity. 

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Redistribution, reproduction and/or photocopying in whole or in part is prohibited without written permission. © 2015 Experian Information Solutions, Inc.  All rights reserved

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SOURCE S&P Dow Jones Indices