S&P Net Originated Loans to Increase in Auto ABS

    NEW YORK, Feb. 28 As consumers become more comfortable
obtaining auto loans over the Internet, this distribution channel is likely to
grow in popularity and more of these loans will be included in the companies'
asset-backed securities (ABS) transactions, according to a new report by
Standard & Poor's titled "Auto Loan ABS Market Gains from Corporate Bond
Market Woes."
    In 1999, PeopleFirst.com became the first Internet auto finance company to
securitize.  In 2000, it originated about $500 million in auto loans,
including a small but growing portion of motorcycle loans.  Another auto
Internet finance company also securitized its loans last year but did so in
the private market; it may securitize in the public domain in 2001.
    Moreover, several traditional auto finance companies are also approving
loans over the Internet; however, this does not yet represent a significant
source of their origination volumes.
    The report is available on Standard & Poor's Web site at
http://www.standardandpoors.com/ratings.  Click on Forum. Then, under Ratings
Commentary, click on Structured Finance.  It is also available on
RatingsDirect, Standard & Poor's Web-based credit analysis system.
     For more information, members of the media may contact Lisa Tibbitts,
media relations manager, at (1) 212-438-7530, or
lisa_tibbitts@standardandpoors.com. -- CreditWire