Fitch Rates the Ford Credit Auto Owner Trust 2005-A 'AAA'

NEW YORK--Jan. 1, 20054, 2005--Fitch rates the Ford Credit Auto Owner Trust 2005-A as follows:

-- $723,000,000 class A-1 2.62% asset-backed notes 'F1+';

-- $1,549,000,000 class A-2 3.08% asset-backed notes 'AAA';

-- $1,383,000,000 class A-3 3.48% asset-backed notes 'AAA';

-- $620,000,000 class A-4 3.72% asset-backed notes 'AAA';

-- $135,000,000 class B 3.88% asset-backed notes 'A';

-- $90,000,000 class C 4.08% asset-backed notes 'BBB+';

-- $90,000,000 class D 7.00% asset-backed certificates 'BB+'(1).

(1) To be retained by seller

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

The 2005-A transaction is backed by a pool of new and used automobile and light truck loans. The class D certificates are retained by the seller. As in prior Ford transactions, 0% APR loans, typically extended to the stronger credit quality borrowers, have been included into the transaction. Approximately 20.22% of the receivables have rates below 0.50%, resulting in a weighted average APR of 5.27%. As with previous deals, the 2005-A transaction incorporates the YSOC feature to compensate for receivables with interest rates below 8.0%. The YSOC is subtracted from the pool balance to calculate bond balances and the first priority, second priority, and regular principal distribution amounts, resulting in the creation of 'synthetic' excess spread. These amounts enhance the receivables' yield and are available to cover losses and turbo the class of securities then entitled to receive principal payments.

Initial enhancement for the class A notes as a percentage of collateral balance less YSOC is 5.5% and consists of 5.0% subordination from the class B notes (3.0%) and the class C notes (2.0%) and the 0.5% initial deposit to the reserve account. After the closing date, the specified credit enhancement amount for all classes of notes and certificates, which consists of both the reserve account and OC, is 1.0%, thereby bringing the total target class A credit enhancement to 6.0%. Initial enhancement for the class B notes as a percentage of collateral balance minus YSOC is 2.5% and consists of the 2.0% subordination of the class C notes and the 0.5% reserve account. The target enhancement is 3.0% and is made up of the subordination of the class C notes and the specified credit enhancement, as described above. Initial enhancement for the class C notes as a percentage of collateral balance minus YSOC is 0.5% provided by the reserve account. The target enhancement is 1.0%.

In addition to enhancement levels for each class of notes discussed above, under the expected base case scenario excess spread provides an additional 2% enhancement in the form of class D (privately placed) subordination. On the closing date, the aggregate principal balance of the notes and certificates will be 102% of the initial pool balance less the YSOC. The class D certificates represent the undercollateralized 2%. During amortization, both excess spread and principal collections are available to reduce the bond balance. Hence, if excess spread is positive, the bonds will amortize more quickly than the collateral. It is this mechanism that ensures that the class D certificates are collateralized and the specified credit enhancement level is achieved.

Furthermore, the 2005-A transaction provides significant structural protection through a shifting payment priority mechanism. In each distribution period, a test will be performed to calculate the amount of desired collateralization for the notes versus the actual collateralization. If the actual level of collateralization is less than the desired, then payments of interest to subordinate classes may be suspended and made available as principal to higher rated classes.

Based on the loss statistics of Ford Credit's prior securitizations and Ford's U.S. retail portfolio performance, Fitch expects consistent performance from the pool of receivables in the 2005-A pool. Through September 2004, Ford's gross average retail portfolio outstanding totaled approximately $74.27 billion, total delinquencies as a percentage of average contracts outstanding of 2.32%, and net losses as a percentage of the average gross outstanding principal balance were 1.44%.