* Says Experian continues to win new orders, is optimistic
* Signed "big" deal with "big" global bank, more in pipeline
* May reduce debt level target next year
* To hit bottom of current debt range by year end/just after
* Assuming no improvement in conditions in coming year
(Adds details, background)
By Myles Neligan
LONDON, Nov 28 (Reuters) - Credit-checker Experian continues to win new orders and is optimistic it will grow through the economic downturn, but the group may rein in borrowing further as a precautionary measure, said finance chief Paul Brooks.
Experian, which brought debt back within its target range of 1.75 to 2 times earnings during the first half, may look at lowering this target at the end of its financial year in March, Brooks said in an interview on Friday.
"I think it'll be under consideration. It's certainly true to say the game has changed in the last six months and balance sheet strength has become a far more important criterion," Experian's chief financial officer told Reuters.
"We won't hit the bottom of the range until our year end or maybe a bit later, so we'll review the situation then."
Experian has no pressing need to raise funds, with headroom of $1.1 billion in its banking facility.
However, its cautious approach to borrowing partly reflects its acute awareness of how reluctant banks -- its biggest clients -- are to lend in the wake of the credit crunch.
LENDING DROUGHT
"I think you'll find, if you talk to any business, that new lending is almost impossible to come by right now. It's not an issue for us, but there's nothing, really nothing doing," Brooks said.
"Banks are so focused on their balance sheets that they're not in a position to engage in new lending."
This dearth of bank finance also applies to consumer credit markets, undermining Experian's traditional business of running household credit checks for banks and retailers.
However, the company, which last week reported a better-than-expected 8 percent rise in interim earnings, has fought back with new risk-management products tailored for the downturn, which help banks identify potential defaulters and optimally target their debt collection efforts.
"The countercyclical products are important for us. Our clients need us more than ever in these areas, and we're very confident they will continue to grow in these tough times," Brooks said.
Experian has also pushed into fast-growing markets in Asia and Latin America, and Brooks says its global presence is giving it the edge over rivals as multinational banks look for partners with a worldwide reach.
"Last week there was a big deal we won which could ultimately go into 40 countries, obviously it's with a big global bank. This isn't the only deal of that sort that's in the pipeline, and they will have an impact," Brooks said.
STABILISATION
Brooks said that while Experian does not expect a recovery in the United States or United Kingdom next year, there should be some stabilisation in its most seriously-affected businesses.
"We do have a feeling that a lot of our credit-type activities in the mature markets are at such a low ebb that it's difficult to imagine them getting weaker on a sequential basis," he said, singling out its U.S. "pre-screen" business, which puts together mailing lists for banks making pre-approved credit offers.
"We're now at a level that's so low it's barely at a level sufficient to keep our databases fresh," he said.
Brooks says the core problem facing the banking sector remains a lack of liquidity, and he is waiting to see whether the UK's recent 37 billion pound recapitalisation of the banking sector has the desired effect.
"In theory interest rates are low, but if you haven't got banks lending to each other or to businesses and consumers, that's a big issue."
"Our working assumption is that we don't expect things to improve in the foreseeable future. Our planning scenario for next year is pretty much a continuation of current trends."
Experian shares are down 3.8 percent in the year to date, against a decline of 35 percent in the FTSE 100 share index. (Editing by Paul Hoskins and Simon Jessop)