Fitch: 2001 ABS Issuance Up Slightly, Credit Outlook Less Clear

16 January 2001

Fitch: 2001 ABS Issuance Up Slightly, Credit Outlook Less Clear

    NEW YORK--Jan. 16, 2001--Overall asset-backed securities (ABS) issuance in 2001 will be up slightly to approximately $280 billion, but the credit outlook for the coming year is not as clear, according to the international rating agency Fitch.
    The lead article in the most recent edition of the newsletter "The Fitch ABS Exchange" explores the ABS market for the year 2001, identifying those specific sectors that could be especially troublesome for investors.
    "We expect the commercial ABS and capital sector to continue to take its lumps in 2001, particularly in the franchise loan and equipment lease areas," said Kevin Duignan, group managing director, Fitch. "In other areas, the credit outlook for credit cards and autos may not be as rosy as 2000, but both sectors appear positioned to handle a moderate economic downturn."
    The new issue of "The Fitch ABS Exchange" newsletter also includes pieces on the first-ever default study to encompass all classes of structured finance and new rating criteria for cash flow ABS/MBS CDOs. Other pieces address the changing and challenging environment of the equipment leasing industry and Fitch's latest timeshare index and ratings criteria.
    "The Fitch ABS Exchange" is a Web-based newsletter designed to provide investors and other capital market participants with timely and accurate information regarding consumer and commercial finance trends, specific ABS sectors and the ABS deals rated by Fitch.
    To view or download a copy of "The Fitch ABS Exchange," log on to the FitchResearch section of Fitch's Web site (located at www.fitchratings.com) choose "Structured Finance" under the "Sector" heading then select "Newsletters" under the "Research" heading.
    Additionally, the newsletter can be found by contacting Market Services at 1-800-853-4824.