Fitch Rts Honda Auto Receivables 2001-1 Owner Trust Cls A `AAA'

    NEW YORK--Feb. 28, 2001--Fitch rates Honda Auto Receivables 2001-1 Owner Trust's (the trust) $441.5 million 5.270% class A- 1 notes `F1+' and the $416 million 5.150% class A-2, $441 million 5.360% class A-3 and the $209.349 million 5.560% class A-4 notes `AAA.' The trust also issued $58,747,937.34 in certificates that are initially retained by the seller and are not rated.
    The ratings on the notes reflect the available credit enhancement, the transaction's sound legal structure and the high quality of the retail auto receivables originated and serviced by American Honda Finance Corporation (AHFC). Credit enhancement is provided by a 3.75% subordinated certificate piece, as well as a non-declining reserve account. American Honda Receivables Corporation, the seller, will deposit 0.50% of the initial receivables balance into the reserve account. Subsequently, excess spread will increase the reserve account to 0.75% of the original collateral balance. As the pool amortizes, the reserve account will grow as a percentage of the outstanding collateral balance, effectively increasing credit enhancement.
    Fitch's ratings address the likelihood of full payment of interest and principal by the final distribution date of each class. Principal and interest on the notes is distributed monthly, commencing March 19, 2001. The 2001-1 transaction marks the third time that AHFC has utilized an owner trust, having issued six grantor trusts prior to the 1999-1 transaction. Principal is distributed on a modified pro rata basis, with the class A-1 notes receiving all principal collections until paid in full. Once the class A-1 notes are retired, principal is distributed sequentially among the remaining class A notes, but pro rata with the certificates. However, in the event that the reserve fund on any distribution date would be less than its specified level, the notes will receive all of the principal collections until such time as the reserve account is funded up to its specified level. Other structural features include a yield supplement account, the purpose of which is to augment interest collections on those receivables whose APR is less than the average bond rate weighted by the time weighted average lives of the notes plus the 1% servicing fee.
    Business and credit stress scenarios are applied to the collateral to insure the structure is sufficient to withstand `AAA' scenarios. Under the available credit enhancement the class A notes can sustain 5 times (x) Fitch's base case cumulative net loss estimate, which is consistent with a `AAA' rating.
    The 2001-1 pool includes retail auto loan contracts backed by both new and used vehicles. Approximately 90.5% of the principal balance of the receivables pool represents financing for new vehicles. Receivables are concentrated in California (20.58%), Texas (7.95%), New York (7.15%), and New Jersey (5.90%). No other state represents more than 5% of the pool.
    Based on the loss statistics of AHFC's prior securitizations, and AHFC's portfolio performance, Fitch expects excellent performance from the pool of receivables in the 2001-1 pool. For the nine months ending Dec. 31, 2000, Honda's net retail portfolio of approximately $7.463 billion had annualized 60+ day delinquencies as a percentage of principal amount outstanding of 0.24%, and net annualized losses as a percentage of the principal amount outstanding were 0.16%.