This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Russian Consumers' Credit Health Falls To Three-Year Low, According To FICO And NBKI Data

MOSCOW, Aug. 14, 2013 /PRNewswire/ --  FICO (NYSE:FICO), a leading predictive analytics and decision management software company, and the National Bureau of Credit Histories (NBKI), Russia's leading credit bureau, today announced that Russian borrowers' credit repayment delinquencies rose in July 2013, continuing the climb that started in early 2012. The country's FICO ® Credit Health Index is now at 104 points, the lowest level since January 2010.

(Logo: http://photos.prnewswire.com/prnh/20111010/CG83314LOGO)

The FICO Credit Health Index measures Russia's overall credit health, based on the percentage of consumer loans and credit cards reported to NBKI that are delinquent by more than 60 days. In July, 9.81 percent of Russian credit accounts were delinquent, compared with 7.05 percent in January 2012 and 7.75 percent in July 2012.

All regions within Russia had lower FICO Credit Health Index scores than last quarter, and lower than in January 2013. The Severo-Kavkazskii region has shown the largest decline (nine points) in borrowers' credit performance this year, while the smallest decline (four points) occurred in the Privoljskii and Uralskii regions. Centralnyi had the highest Credit Health Index, at 108.

''The rapid development of the retail lending market in Russia has created a group of borrowers who actively increase their liabilities without proper assessment of their ability to discharge them," said  Alexander Vikulin, CEO of NBKI, who noted that the number of borrowers with five or more existing loans reached 450,000 in July. "Despite the fact that these people represent less than 1 percent of all Russian borrowers, their high credit activity is having an increasing impact on the dynamics of the index."

"While these figures present a concern for individual lenders, they're merely a by-product of rapid market growth," said Evgeni Shtemanetyan, who directs FICO's operations in Russia. "As lenders grant more unsecured consumer loans and credit cards, which are the highest-risk credit products, delinquency rates are rising. This credit expansion is good for the Russian economy, but the higher delinquency rates demand a more disciplined approach to risk management on the part of banks, so they can ensure the health and sustainability of their bottom lines."

FICO and NBKI share this data with Russian lenders to improve their understanding of the market, and help them extend credit to consumers safely. More than half of the top Russian banks use FICO ® Scores delivered by NBKI.

About NBKI

National Bureau of Credit Histories (NBKI) is the largest credit bureau in the Russian Federation. It was created in 2005, and counts among its shareholders major commercial banks and international companies CRIF and TransUnion. Its main specialty is an integrated center that stores and processes comprehensive data for creditors' decision making. As of July 2013, NBKI consolidates data about 120 million loans from 1,600 Russian creditors. The bureau provides the Russian market with modern high-tech solutions for risk assessment and control.

About FICO

FICO (NYSE: FICO), formerly known as Fair Isaac, is a leading analytics software company, helping businesses in 80+ countries make better decisions that drive higher levels of growth, profitability and customer satisfaction. The company's groundbreaking use of Big Data and mathematical algorithms to predict consumer behavior has transformed entire industries. FICO provides analytics software and tools used across multiple industries to manage risk, fight fraud, build more profitable customer relationships, optimize operations and meet strict government regulations. Many of our products reach industry-wide adoption — such as the FICO ® Score, the standard measure of consumer credit risk in the United States. FICO solutions leverage open-source standards and cloud computing to maximize flexibility, speed deployment and reduce costs. The company also helps millions of people manage their personal credit health. FICO: Make every decision count . Learn more at www.fico.com.

For FICO news and media resources, visit www.fico.com/news.

Statement Concerning Forward-Looking Information

Except for historical information contained herein, the statements contained in this news release that relate to FICO or its business are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the success of the Company's Decision Management strategy and reengineering plan, the maintenance of its existing relationships and ability to create new relationships with customers and key alliance partners, its ability to continue to develop new and enhanced products and services, its ability to recruit and retain key technical and managerial personnel, competition, regulatory changes applicable to the use of consumer credit and other data, the failure to realize the anticipated benefits of any acquisitions, continuing material adverse developments in global economic conditions, and other risks described from time to time in FICO's SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2012 and its last quarterly report on Form 10-Q for the period ended june 30, 2013. If any of these risks or uncertainties materializes, FICO's results could differ materially from its expectations. FICO disclaims any intent or obligation to update these forward-looking statements.

FICO and "Make every decision count" are trademarks or registered trademarks of Fair Isaac Corporation in the U.S. and other countries.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,039.49 +60.36 0.36%
S&P 500 1,992.37 +5.86 0.30%
NASDAQ 4,532.1040 +5.6220 0.12%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs