Fitch Expects to Rate Household Automotive Trust 2003-2 ABS Nts 'F1+/AAA'

NEW YORK--Nov. 20, 2003--Fitch Ratings expects to rate Household Automotive Trust 2003-2 asset backed notes as follows:

-- $159,000,000 Class A-1 1.14% money market notes 'F1+';

-- $205,000,000 Class A-2 1.56% Notes 'AAA';

-- $190,000,000 Class A-3 2.31% Notes 'AAA';

-- $196,000,000 Class A-4 3.02% Notes 'AAA'.

The 2003-2 transaction marks Household Finance Corp.'s (HFC) 13th securitization backed by retail loans to subprime borrowers. The securities were issued with a financial guarantee insurance policy from MBIA Insurance Corp. (MBIA), which is rated 'AAA' by Fitch Ratings. The insurance policy ensures full and timely payment of interest and principal by the legal final distribution date. Fitch's preliminary ratings are based on the terms of the financial guaranty insurance policy and insurer financial strength rating of MBIA, the transaction's sound legal and cash flow structure, and the capabilities of HFC as servicer and Household Automotive Finance Corp. (HAFC) as subservicer of the receivables.

Interest and principal on the notes are distributed monthly, beginning Jan. 19, 2004. Principal payments on the notes are made sequentially, beginning with the class A-1 notes until paid in full. Before drawing upon the insurance policy, losses will be covered by excess spread, 12.5% initial overcollateralization (OC) (with a target of 18%), and a 1% reserve account (which grows to 3% of the outstanding pool balance, with a floor of 2% of the initial collateral balance).

The receivables in the 2003-2 trust are simple interest receivables made with respect to new (31.5%) and used (68.5%) automobiles and light-duty trucks and vans. As of the statistical cutoff date, Oct. 3, 20031, 2003, the aggregate principal on the pool was $861,997,778 and the weighted average APR on the loans was 14.38%. The pool is well diversified geographically, with Texas, California, and Florida accounting for 17.72%, 9.96%, and 7.96% of the pool, respectively.

Household International, Inc. is a leading provider of consumer finance products, including home equity loans, revolving and closed-end unsecured personal loans, nonprime/subprime automobile loans, private label credit cards, and MasterCard and Visa credit cards. Household's operations are conducted mainly in the U.S., U.K., and Canada. On March 31, 2003 Fitch Ratings affirmed the 'A' senior long-term and 'F1' commercial paper rating of Household International, Inc. (Household) upon the closing of its purchase by HSBC Holdings plc (HSBC). The Rating Outlook is Stable.

HSBC's 100% ownership of Household, management's stated intentions for Household, and its historical support of banking subsidiaries, combined with the financial resources available at HSBC provides sufficient comfort in factoring support into the long term rating. In Fitch's opinion there is a high probability that in the event of financial distress, support by HSBC would be provided.