Latest Main Street Report shows credit utilization down while available credit rose

Costa Mesa, Calif., Nov. 17, 2016 — The presidential election was a historic event, with passionate supporters on both sides of the aisle, all wondering what would happen. As we look back on the third quarter, we see that small businesses shared the uncertainty about what the future might hold. Experian®, the leading global information services company, and Moody’s Analytics, a leading independent provider of economic forecasting, today announced that while small business in Q3 enjoyed strong job growth and stable credit conditions, utilization rates continued to fall.

To see a copy of the latest Experian/Moody’s Analytics Main Street Report, visit http://www.experian.com/business-information/landing/msr-q3-2016.html

According to the analysis, small-business credit utilization dropped to just under 49 percent, while the amount of available credit rose by more than 1 percent. With this detailed look at small-business performance, both lenders and small-business owners can have a better understanding of the challenges and opportunities available to the sector.

“The U.S. election may have contributed to uncertainty and constrained investment in the small-business segment,” said Gavin Harding, senior business consultant for Experian. “However, in the coming months we will have a clearer picture of the new administration’s policy agenda as it relates to business. Whatever the outcome, with strong fundamentals and capital availability, small businesses are in a good position to respond.”

At the national level, small businesses continued to do well managing delinquencies, remaining essentially unchanged from the previous quarter. Severe delinquencies — those 90 or more days past due — showed a decline by 3.7 percent over the last quarter, falling from 5.6 percent to 5.4 percent.

“Credit conditions for small businesses are good and continue to improve, reflecting the solid economy,” said Mark Zandi, chief economist for Moody’s Analytics. “The only blemish is in the energy and related transportation industries, which are struggling with lower oil prices. All signs suggest further declines in delinquency and bankruptcy in the near future.”

Other sections in the Q3 2016 report include a detailed analysis of:

• Small-business risk-assessment strategies.
• Regional perspectives.
• Shifting industry patterns.
• Credit quality.
• A forecasted outlook for the coming months.

In-depth insight and commentary from the Experian/Moody’s Analytics Main Street Report, as well as additional research, will be presented in a webinar on Dec. 14 at 10 a.m. Pacific/1 p.m. Eastern. To register for the event or for more information, visit http://www.experian.com/business-information/landing/msr-q3-2016.html.

Contact:
Roslyn Whitehurst
Experian Public Relations
1 714 830 5578
roslyn.whitehurst@experian.com
Twitter: @RozWhitehurst

About the Experian/Moody’s Analytics Main Street Report
Developed by Experian and Moody’s Analytics, the new Experian/Moody’s Analytics Main Street Report brings deep insight into the overall financial well-being of the small-business landscape, as well as providing commentary about what certain trends mean for credit grantors and the small-business community as a whole. Key factors comprised by the Main Street Report include a combination of business credit data (credit balances, delinquency rates, utilization rates, etc.) and macroeconomic information (employment rates, income, retail sales, investments, etc.).

About Moody’s Analytics
Moody’s Analytics helps capital markets and risk management professionals worldwide respond to an evolving marketplace with confidence. The company offers unique tools and best practices for measuring and managing risk through expertise and experience in credit analysis, economic research and financial risk management. By providing leading-edge software, advisory services, and research, including the proprietary analysis of Moody’s Investors Service, Moody’s Analytics integrates and customizes its offerings to address specific business challenges. Moody's Analytics is a subsidiary of Moody's Corporation (NYSE: MCO), which reported revenue of $3.5 billion in 2015, employs approximately 10,900 people worldwide and maintains a presence in 36 countries. Further information is available at www.moodysanalytics.com.

About Experian’s Business Information Services
Experian’s Business Information Services is a leader in providing data and predictive insights to organizations, helping them mitigate risk and improve profitability. The company’s business database provides comprehensive, third-party-verified information on virtually all U.S. companies, with the industry’s most extensive data on the broad spectrum of small and midsize businesses.

By leveraging state-of-the-art technology and superior data-compilation techniques, Experian provides market-leading tools that proactively support the entire credit life cycle, enabling our clients to find new customers, process new applications, manage customer relationships and collect on delinquent accounts.

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 2016, for the third year running, we were named one of the “World’s Most Innovative Companies” by Forbes magazine.

We employ approximately 17,000 people in 37 countries and our corporate headquarters are in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São 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, 2016, was US$4.6 billion.

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

Experian and the Experian marks used herein are trademarks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the property of their respective owners.

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