Fitch Rates Wachovia Auto Loan Owner Trust 2006-2 'F1+/AAA'

NEW YORK--Fitch rates Wachovia Auto Loan Owner Trust 2006-2 fixed-rate asset-backed notes as follows:

--$219,000,000 class A-1 'F1+';

--$378,000,000 class A-2 'AAA';

--$306,000,000 class A-3 'AAA';

--$135,000,000 class A-4 'AAA';

--$45,000,000 class B 'AA';

--$48,000,000 class C 'A';

--$39,000,000 class D 'BBB+';

--$30,000,000 class E 'BB'.

The securities are backed by a pool of new and used automobile and light-duty truck installment loans originated by WFS Financial Inc (WFS), a subsidiary of Wachovia Bank N.A. (Wachovia). The expected ratings on the notes are based on the enhancement provided by subordination, over-collateralization (OC), and a cash reserve account. The expected ratings also reflect the servicing capabilities of Wachovia, the high quality of retail auto receivables originated by WFS, and the sound legal and cash flow structures. Wachovia Auto Loan Owner Trust 2006-2 represents Wachovia's second securitization of WFS collateral subsequent to its purchase of Westcorp and its auto finance business, WFS.

The class A notes have initial credit enhancement (CE) of 13.75 %, consisting of 13.50% subordination, and a 0.25% reserve. The class B notes are supported by initial CE of 10.00% comprised of 9.75% subordination, and a 0.25% reserve. The class C notes have 6.00% CE (5.75% subordination and a 0.25% reserve), the class D notes have 2.75% initial CE (2.5% subordination and a 0.25% reserve) and class E notes have 0.25% initial CE (0.25% reserve). CE is expected to grow to 15.00% for Class A; 11.25% for class B, 7.25 for class C and 4.00% for class D and 1.5% for class E via accumulation of the cash reserve account to 0.50% of the initial pool balance and the growth of OC to 1.00% of the outstanding pool balance. Cash reserve floor is set to 0.50% of the initial pool balance while the floor for OC equals to 0.50%.

As of the statistical cutoff date, the receivables had a weighted average APR of 12.42%. The weighted average original maturity of the pool was 67.0 months and the weighted average remaining term was 63.5 months resulting in approximately 3.5 months of collateral seasoning. The pool has a large concentration of receivables originated in California (34.02%). The next four largest state concentrations are Arizona (5.88%), Washington (5.75%), Texas (4.01%) and Nevada (3.14%). The exposure in California may subject the pool to potential regional economic downturns; however, the remaining portion of the pool is well diversified.

Interest and principal are payable monthly, beginning Dec. 20, 2006. Additional structural protection is provided to senior noteholders through a shifting payment priority mechanism. In each distribution period, a test will be performed to calculate note collateralization amounts. If notes are undercollateralized, payments of interest to subordinate classes may be suspended and made available as principal to higher rated classes.

Based upon a review of WFS's retail auto loan portfolio performance, prior WFS securitizations, and the composition of the assets in the securitized pool, Fitch expects Wachovia Auto Loan Owner Trust 2006-1 to perform consistent with recent securitizations. Through June 30, 2006, WFS's managed retail portfolio of approximately $13.9 billion had total delinquencies of 1.87%, and net chargeoffs of 1.28% (annualized). Both statistics were calculated as a percentage of the amount of contracts outstanding.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.