Fitch Rates Hyundai Auto Receivables Trust 2004-A

NEW YORK--Sept. 1, 2004--Fitch rates Hyundai Auto Receivables Trust 2004-A as follows:

-- $155,000,000 class A-1 notes 1.78125% 'AAA';

-- $215,000,000 class A-2 notes 2.36% 'AAA';

-- $188,000,000 class A-3 notes 2.97% 'AAA';

-- $92,100,000 class A-4 notes 3.54% 'AAA';

-- $36,500,000 class B notes 3.46% 'AA';

-- $26,900,000 class C notes 3.36% 'A+';

-- $32,800,000 class D notes 4.10% 'BBB+'.

Fitch's ratings on the notes and certificates are based upon their respective levels of subordination and the specified credit enhancement amount, which consists of funds in the reserve account, overcollateralization (OC), and the yield supplement overcollateralization amount (YSOA). All ratings reflect the transaction's sound legal structure, the high quality of the retail auto receivables originated by Hyundai Motor Finance Company, and the strength of Hyundai Motor Finance Company as servicer.

The collateral securing the notes consists of simple interest retail installment sales contracts secured by new and used automobiles and light-duty trucks to prime borrowers. The pool contains a higher percentage of loans financing the purchase of Kia vehicles. A large portion of the pool has been originated under newly implemented credit score criteria, and loans originated in 2004 are expected to benefit from improvement in the underwriting process.

In terms of credit enhancement, reserve account, and OC, levels remain unchanged from those of prior transactions, with subordination levels slightly lower than those in 2003-A. Initial credit enhancement equal to 16.25% for the class A notes (consisting of 12.50% subordination, 3.00% OC, and a 0.75% reserve account), 11.51% for the class B notes (7.76% subordination, 3.00% OC, and 0.75% reserve), 8.01% for the class C notes (4.26% subordination, 3.00% OC, and 0.75% reserve), and 3.75% for the class D notes (3.00% OC and 0.75% reserve). YSOA compensates for receivables in the pool with low interest rates and increases excess spread available to spread to turbo pay the notes and reach target enhancement levels of 37.00%, 25.50%, 22.00%, and 8.00% for the class A, B, C, and D notes, respectively.

Fitch applied multiple business and credit stress scenarios to the collateral to ensure credit enhancement was sufficient to repay bondholder interest and principal.