S&P: Net-Originated Loans to Increase in Auto ABS

    NEW YORK--Standard & Poor's CreditWire--Feb. 28, 2001--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 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