Fitch: U.S. Auto ABS Delinquencies and Losses Increase in Slow 3Q04

NEW YORK--Oct. 2, 20046, 2004--Prime and subprime delinquencies and losses on auto loan asset-backed securities (ABS) rose during September, with economic growth slowing in the third quarter of 2004, according to Fitch Ratings.

In the prime sector, 60 plus delinquencies jumped 15% to 0.64% in September, the second consecutive increase, and are now 2% higher than in 2003. Annualized net losses (ANL) rose 20% in September to 1.31%, with wholesale values remaining constrained but stable. Cumulative net losses were virtually unchanged at 1.03% during September and are 8% lower than that of September 2003.

The subprime sector also saw weaker performance with 60 plus delinquencies rising for the third month in a row in September to 3.10%, an 11% increase over that of August. ANL jumped 10% in September to 7.32% versus August's 6.58%. However, ANL remained 13% lower year-over-year, but the rate of improvement has slowed in the third quarter.

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' on the 'Structured Finance' sector page under 'ABS' in the 'Newsletters' section.