Fitch: Delinquencies on U.S. Auto Loan ABS Show Further Improvement in April

NEW YORK--May 2, 20041, 2004--Auto loan asset-backed securities (ABS) delinquencies improved during April, aided by improving economics including clear signs of job creation and lower bankruptcy rates, according to Fitch Ratings in its latest edition of 'In the Auto ABS Driver's Seat.'

Fitch's prime auto loan ABS delinquency index, which tracks delinquencies of 60+ days, declined to 0.42% in April, the lowest delinquency rate since mid-2002. In the sub-prime sector, delinquencies dropped 20% to 2.28%, with 93% of the transactions in the index showing better performance during April.

Prime annualized net loss rates were slightly higher in April rising 5.4% to 1.36%. However, sub-prime ANL showed noticeable improvement in April dropping 28% from March to 6.18%. Even with improvement in the wholesale market, the market still faces pressure from high incentive levels used to boost sales of new vehicles heading into the historically slower summer season.

Issuance trailed off slightly during April, with $2.96 billion coming to market in four transactions. Through April, $24.4 billion of auto ABS has been issued, 6.28% lower than in 2003.

The latest edition of 'In the Auto ABS Driver's Seat,' a monthly newsletter that tracks retail auto loan performance, auto industry trends, and developments in the auto ABS securitization market, is available on the Fitch Ratings web site at 'www.fitchratings.com' in the 'Structured Finance' sector page under 'ABS' in the 'Newsletters' section.