S&P Asgns USAA Auto Owner Tr 2002-1 Notes, Certs Rtgs

    NEW YORK--Standard & Poor's--Sept. 27, 2002--Standard & Poor's Ratings Services today assigned its ratings to USAA Auto Owner Trust 2002-1's $626,209,118 of asset-backed notes and certificates (see list).
    The ratings reflect credit enhancement in the form of a fully funded reserve account equal to 0.50% of the initial receivables balance, 2.25% subordination for class A, and approximately 3.5% in annual excess spread. The class A-1 money market notes will receive all principal collections on the loans until paid in full. Principal distributions will then be allocated between the remaining class A notes sequentially until paid in full followed by the certificates. The payment priority in the 2002-1 transaction incorporates a reprioritization feature where if the principal balance of the notes exceeds the principal balance of the receivables, a payment of principal of the notes is made in an amount equal to the excess of the notes over the loans. All classes are fixed-rate securities and an affiliate of the seller will purchase all of the class B certificates from the seller.
    The moderate level of hard (subordination and initial cash reserve deposit) credit enhancement for the 2002-1 transaction reflects the relative strength of a sequential pay structure as well as the continued solid and consistent performance of USAA Federal Savings Bank's (USAA) auto loan portfolio.
    USAA Auto Owner Trust 2002-1 marks USAA's first term securitization in 2002. USAA, a wholly owned subsidiary of United Services Automobile Association, is an insurance and financial services provider primarily serving current and former members of the U.S. Armed Forces and their dependents. All of the receivables have been originated by and will be serviced by USAA, which operates out of its offices in San Antonio, Texas. USAA's auto loan portfolio has consistently performed well-above average, even compared with other prime auto lenders. The bank's auto loan portfolio increased to $4.8 billion at June 30, 2002, from $4.5 billion at June 30, 2001. Annualized net charge-offs at June 30, 2002, decreased slightly to 0.23% from 0.25% at June 30, 2001. Delinquencies over 30 days as a percentage of outstanding loans as of June 30, 2002, were 0.32%, down from 0.36% for the same period in 2001.



RATINGS ASSIGNED
USAA Auto Owner Trust 2002-1

Class            Rating           Amount ($)
A-1              A-1+            178,000,000
A-2              AAA             139,000,000
A-3              AAA             225,000,000
A-4              AAA              70,120,000
B                A-               14,089,118