Fitch Rates Household Automotive Trust 2001-1 `AAA'

    NEW YORK--March 7, 2001--Fitch assigns the following ratings to Household Automotive Trust 2001-1:

    --$137 million 4.98875% class A-1 notes `F1+';

    --$159 million 5.02% class A-2 notes `AAA';

    --$177 million 5.26% class A-3 notes `AAA';

    --$187 million 5.57% class A-4 notes `AAA'.

    The ratings are based on available credit enhancement, the capabilities of Household Finance Corp. (currently rated `A+/F1' by Fitch) as servicer and Household Automotive Finance Corp. as sub-servicer, the sound legal and cash flow structure and the quality of the underlying collateral. Credit enhancement consists of overcollateralization, with a targeted overcollateralization level of 34.25%, a reserve account, funded at 1% of the pool principal balance at closing, with a target level of 3% of the current pool balance and a floor of 2% of the original pool balance, the subordination of the 2.25% servicing fee while Household Finance Corp. is servicer, and excess spread. The ratings address the likelihood of payment of full and timely interest and ultimate principal by the final scheduled distribution date of each class.
    The target credit enhancement of 37.25% is lower than the previous three transactions completed in 2000 which had target credit enhancement of 38%. The lower enhancement is attributable to the unique interest rate environment that currently exists. Coupons on the 2001-1 notes are considerably lower than those in 2000, generating the potential for greater excess spread.
    Interest and principal on the notes is distributed on the seventeenth of each month, or next business day, beginning April 17, 2001. Principal payments on the notes will be made sequentially, unless an event of default occurs, in which case principal will be paid pro rata.
    The collateral securing the notes consists of a pool of non-prime retail installment sale contracts secured by automobiles and light duty trucks. The contracts were originated by Household Automotive Finance Corp. indirectly through a network of dealerships nationwide. Obligors under the loans are considered non-prime due to poor credit history or lack of credit history.
    Fitch applied several business and credit stress scenarios to the collateral pool, which included stressing losses, recoveries, delinquencies and prepayments. The transaction's capital structure can support losses consistent with the `AAA' rating assigned.
    The collateral pool consists of over 60,000 receivables, with an average principal balance of approximately $15,989. The weighted-average coupon on the collateral is 18.35%, and the weighted-average remaining term is 61.57 months. Seasoning on the pool is slightly over two months. Approximately 30% of the principal balance of receivables were used to finance new cars, with the remaining 70% financing used cars. The pool is well diversified geographically, with California, Florida, Texas, Illinois and North Carolina accounting for 16.03%, 12.86%, 5.24%, 5.20% and 12.51% of the pool, respectively. No other state accounts for more than 5% of the pool.
    Household Automotive Finance Corporation's (HAFC) serviced portfolio consists of approximately $4.5 billion in non- prime auto loans. HAFC is headquartered in San Diego, with additional regional credit centers in St. Louis, Delaware, Dallas and Atlanta. In addition, HAFC employs approximately 370 collectors in collection centers located in Chicago and Illinois. HAFC was created in 1997, through the merger of a subsidiary of Household International, Inc. and non-prime auto lender ACC Consumer Finance Corp. of San Diego.