Shares in Experian, the world’s largest credit reference checking company, plunged 9.5 per cent on Thursday after the company indicated its second half would be hit by the US subprime mortgage crisis and liquidity squeeze. Since the credit squeeze hit in August, UK and US banks have been reining back mortgage and unsecured lending to consumers. This has affected Experian, which checks the eligibility of borrowers for loans. Don Robert, chief executive, said the liquidity crisis had prompted banks to rein in capital expenditure on projects, which had had knock-on effects, for example on Experian’s decision analytics business, which provides support software to banks.

This entry was posted by Gwen Robinson on Friday, November 16th, 2007 at 5:32 and is filed under Capital markets. Tagged with experian. Edit this entry.