S&P Rates Household Automotive Trust 2001-2 Notes

    NEW YORK--Standard & Poor's--Aug. 9, 2001-- Standard & Poor's assigned its ratings to Household Automotive Trust 2001-2's $700 million auto receivable asset-backed notes (see list).
    The ratings reflect the credit support available to the notes, the performance of Household Automotive Finance Corp.'s (HAFC) auto loan receivables portfolio, and a sound legal structure.
    Credit support available to the noteholders is composed of overcollateralization, a reserve account (partially funded at closing) and excess spread. This is the 16th ACC/ Household Automotive Finance term deal, the seventh without benefit of bond insurance.
    As in recent transactions, the class A-1 through A-4 notes will receive interest on a pro rata basis and principal sequentially. Credit enhancement begins at 31.50% of the initial pool balance, made up of a 1.00% reserve account balance that grows to 3.00% of current, with a 2.00% of initial floor, and 30.50% in overcollateralization, building to 33.75% of current, resulting in a targeted total credit enhancement of 36.75% of the outstanding pool balance.
    Standard & Poor's reviews collateral characteristics and believes this pool of loans to be of comparable credit quality to recent securitized pools. The loans consist of subprime retail installment sales contracts secured by new and used (75% used) automobiles, light duty trucks and vans. The receivables pool is made up of 65,043 auto loans, including approximately 8,700 loans directly originated through the Internet. The originator targets obligors with limited or no credit history, modest income, or who have experienced prior credit difficulties.
    The primary originator and subservicer of the receivables is HAFC, the auto finance subsidiary of Household International Inc. (single-'A'/Stable), a leading consumer finance company. At March 31, 2001, HAFC's serviced portfolio consisted of 360,043 contracts, totaling approximately $4.8 billion, an increase of 43% over the previous year.

Ratings Assigned
Household Automotive Trust 2001-2
Class                               Amount ($000)    Rating
Class A-1 3.74% money market notes        149,000    A-1+
Class A-2 4.12% notes                     173,000    AAA
Class A-3 4.83% notes                     205,000    AAA
Class A-4 5.39% notes                     173,000    AAA