S&P Rates Morgan Stanley Auto Ln Tr 2003-HB1 Nts

NEW YORK--July 25, 2003--Standard & Poor's--Standard & Poor's Ratings Services today assigned its ratings to Morgan Stanley Auto Loan Trust 2003-HB1's asset-backed notes (see list).

The rating on the class A notes reflects 5.75%% subordination and an overcollateralization target amount of 11.8% of the current pool balance. The rating on the class B notes reflects 2.5% subordination and an overcollateralization target amount of 7.5%. The rating on the class C notes reflects 0.75% subordination and an overcollateralization target amount of 5.5%. The rating on the class D notes is based on an overcollateralization target amount of 2.0% of the current pool balance with a floor of 1.0% of the initial pool balance and annual excess spread of approximately 4.0%. In addition, the ratings on the notes are based on the credit quality of the underlying pool of automobile loans originated by Huntington National Bank, which will continue to service the loans, and a sound legal structure.

This transaction incorporates a number of structural features. It is a premium proceeds transaction with total rated securities of $561.813 million exceeding the initial pool balance of $553.7 million. This undercollateralization is eliminated through the application of excess spread to reduce the principal balance of the notes. The payment waterfall begins as a sequential payment structure. The payment structure may begin to make pro rata principal distributions if certain target overcollateralization amounts are achieved. The payment structure also allows for the reprioritization of subordinate interest to pay senior principal as additional loss coverage for senior classes. In addition, there are loan performance triggers built into the structure that cause the payment priority to switch back to sequential from pro rata if loan performance deteriorates beyond certain levels.


RATINGS ASSIGNED
Morgan Stanley Auto Loan Trust 2003-HB1

Class                  Rating       Amount (mil. $)
A-1                    AAA                  408.175
A-2                    AAA                  113.714
B                      A                     17.996
C                      BBB                    9.690
D                      BB                    12.238