Nissan Auto Lease Trust 2003-A Rated 'F1+/AAA' by Fitch

NEW YORK--Oct. 2, 20039, 2003--Nissan Auto Lease Trust 2003-A $240.3 million asset-backed class A-1 notes are rated 'F1+' and the $277.0 million asset-backed class A-2 notes, $379.95 million asset-backed class A-3a notes, and $342.45 million asset-backed class A-3b notes are rated 'AAA' by Fitch. The notes are backed by beneficial interests in a pool of retail lease contracts and related Nissan leased vehicles originated by Nissan Motor Acceptance Corp. (NMAC). The transaction is NMAC's first public vehicle lease securitization. The ratings are based upon the high quality of the receivables pool, available credit enhancement, NMAC's underwriting, servicing, and vehicle remarketing expertise, the terms of the interest rate cap agreement and financial strength of the interest rate swap counterparty, and sound legal and cash flow structures.

Initial credit enhancement for the Series 2003-A notes consists of 15.00% subordination provided by 13.00% of certificate subordination and a 2.00% reserve account which will be fully funded at closing and will build to 3.50% of the initial aggregate securitization value through excess spread. To evaluate the 2003-A enhancement structure, Fitch applied various economic and business stress scenarios to key asset performance measures. Given that the potential for residual value loss is a key risk factor in evaluating auto lease transactions, Fitch stressed vehicle turn-ins and residual value losses. The Fitch 'AAA' stress scenario, which assumes a 95% vehicle turn-in rate, resulted in a loss of 19.73% of the residual value portion of the pool, which translates into a loss of 11.00% for the entire original securitized pool balance. Additionally, credit risk was addressed in the scenario analysis through the stressing of prepayments, delinquencies, credit losses, and recovery levels and timing. The ensuing cash flows were still sufficient to repay interest and principal on the notes in accordance with the terms of the documents.

Interest and principal is distributed on the 15th of each month or the first business day thereafter, beginning November 17, 2003. Interest on the class A-1, class A-2, class A-3a, and class A-3b notes accrues at a rate of 1.16563%, 1.69%, a floating rate based on One-Month LIBOR, and at 2.57%, respectively. Principal distributions are sequential, beginning with the class A-1 notes. If an event of default occurs, the class A-1 notes receive all principal distributions until paid in full and then principal distributions will be made to the remaining class A notes in a pro rata fashion. The expected final maturities for the notes are as follows: July 15, 2004 for the class A-1 notes, March 15, 2005 for the class A-2 notes, and November 15, 2006 for the class A-3a and A-3b notes. The final scheduled payment dates for the notes are as follows: October 15, 2004, December 15, 2005, and June 15, 2009 for the class A-1, A-2, and A-3 notes, respectively.

The loss experience for NMAC's U.S. Nissan lease contract portfolio has been excellent. NMAC experienced losses under 1% on its Nissan retail lease contract receivables for the four months ended June 30, 2003. Since 1999, NMAC's losses on its Nissan retail lease contract portfolio have averaged 0.80%. The strong performance is attributable to NMAC's conservative underwriting policies and effective servicing of the portfolio.

NMAC is a wholly owned subsidiary of Nissan North America, Inc. (NNA), which is a direct wholly owned subsidiary of Nissan Motor Co., Ltd. (NML). In addition to consumer lease and retail installment contract financing, NMAC also provides dealer floorplan financing.