Fitch Places Budget & ANC Rental ABS Deals On Rtg Watch Neg

    NEW YORK--Sept. 27, 2001--Fitch places the ratings of Team Fleet Financing Corporation (a wholly owned subsidiary of Budget Group, Inc.) and National Car Rental Financing Limited Partnership (a wholly owned subsidiary of ANC Rental Corporation) rental car ABS transactions on Rating Watch Negative.
    Fitch expects rental car demand to decline over the next several months as the industry experiences a slowdown in business and leisure travel related to the tragic events of Sept. 11. As a result, Fitch anticipates fleet reductions and weaker operating results among the rental car companies. The uncertainty and potential for a prolonged decline in demand, coupled with softening used car prices and continued aggressive rental pricing competition, have created instability within the rental car industry, which could have a negative impact on certain rental car ABS transactions rated by Fitch.
    Rental car ABS transactions are supported by monthly payments from the rental car companies to cover interest, various other carrying costs, and depreciation on the vehicles and the liquidation values of the rental cars. Fitch is concerned that smaller, less credit worthy rental car companies with already weakened credit profiles will be strained to make the required monthly payments to the rental car ABS transaction, should the industry face a sustained decline in rental demand. The inability of a rental car company to make required payments would cause an amortization event to occur, and would force a liquidation of the cars in a transaction during a very stressful period. The confluence of these unique events may cause a deterioration of credit enhancement beyond original expectations.
    Fitch relies on the timely liquidation of the collateral to repay outstanding rental car ABS transactions. In particular, ongoing vehicle maintenance and the strength of the used car market are key factors in protecting collateral values. Fitch continues to assess the quality of each rental car company's maintenance and servicing procedures, however as the credit profile of a rental car company deteriorates the commitment to servicing will inevitably decline as well. Manufacturer repurchase obligations on a majority of the rental car fleet and credit enhancement sized as a multiple of current depreciation rates provide significant protection against declining used car prices.
    Fitch will monitor factors which may negatively impact existing ratings over the next six months, including business and leisure rental demand, future bookings, fleet utilization ratios, program versus non-program composition, used car prices and auction results from defleeting initiatives, and rental pricing competition.

    Below is a list of the 144A and public rental car transactions placed on Rating Watch Negative by Fitch.

    National Car Rental Financing LP 1996-1

--	Class A-4 notes, rated ‘A’, Rating Watch Negative;
--	Class B-3 notes, rated ‘BBB’, Rating Watch Negative.

    Team Fleet Financing Corp.

    Series 1996-1 Rental Car Asset Backed Notes

    -- Class A notes, rated ‘A’, Rating Watch Negative;

    -- Class B notes, rated ‘BBB’, Rating Watch Negative.

    Series 1997-1 Rental Car Asset Backed Notes

    -- Class A notes, rated ‘A’, Rating Watch Negative;

    -- Class B notes, rated ‘BBB’, Rating Watch Negative.

    Series 1998-2 Rental Car Asset Backed Notes

    -- Class A notes, rated ‘AA’, Rating Watch Negative;

    -- Class B notes, rated ‘A’, Rating Watch Negative;

    -- Class C notes, rated ‘BBB’, Rating Watch Negative.

    Series 1998-3 Rental Car Asset Backed Notes

    -- Class A notes, rated ‘AA’, Rating Watch Negative;

    -- Class B notes, rated ‘A’, Rating Watch Negative;

    -- Class C notes, rated ‘BBB’, Rating Watch Negative.

    Series 1998-4 Rental Car Asset Backed Notes

    -- Class A notes, rated ‘AA’, Rating Watch Negative;

    -- Class B notes, rated ‘A’, Rating Watch Negative;

    -- Class C notes, rated ‘BBB’, Rating Watch Negative.

    Series 1999-3 Rental Car Asset Backed Notes

    -- Class A notes, rated ‘AAA’, Rating Watch Negative;

    -- Class B notes, rated ‘AA’, Rating Watch Negative;

    -- Class C notes, rated ‘A’, Rating Watch Negative;

    -- Class D notes, rated ‘BBB’, Rating Watch Negative.

    Series 1999-4 Rental Car Asset Backed Notes

    -- Class A notes, rated ‘AAA’, Rating Watch Negative;

    -- Class B notes, rated ‘AA’, Rating Watch Negative;

    -- Class C notes, rated ‘A’, Rating Watch Negative;

    -- Class D notes, rated ‘BBB’, Rating Watch Negative.

    Series 2001-2 Rental Car Asset Backed Notes

    -- Class A notes, rated ‘AAA’, Rating Watch Negative;

    -- Class B notes, rated ‘AA’, Rating Watch Negative;

    -- Class C notes, rated ‘A’, Rating Watch Negative.