Fitch: U.S. Auto ABS Losses Move Higher; Further Weakness Expected

NEW YORK--(Business Wire)--
Fitch Ratings' prime and subprime U.S. auto asset-backed security
(ABS) performance indexes produced higher delinquency and annualized
net losses (ANL) in July. Fitch expects loss rates to increase further
during the fall, which is historically the weakest period of the year.

In July, ANL on prime auto ABS hit the highest level for the year
at 1.42%, increasing 15% over June's level. ANL in July were 94%
higher than in July 2007. The last time ANL were at this level was in
late 2003/early 2004. Prime delinquencies rose to 0.71%, 14.5% higher
than in June, and 37% higher than in July 2007.

In the subprime sector, ANL were at 6.56% in July, a 16.5%
increase over June, and 45% above a year earlier. Subprime
delinquencies rose 11% in July to 3.63%. Delinquencies were 30% higher
in July versus the same period in 2007.

While the wholesale vehicle market did show signs of stabilization
in July, Fitch remains unconvinced that the market will improve
structurally in the short term. The wholesale vehicle market remains
soft with considerable weakness in the truck and sports utility
segments, along with lower recovery rates in the luxury vehicle space.
Additionally, current economic conditions combined with poor consumer
demographics will continue to constrain the used vehicle market.

Fitch's indexes track the performance of $65.2 billion of auto
ABS, of which 69% comprises prime auto ABS and the remaining 31%
subprime auto ABS.

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.

Fitch Ratings, New York
Hylton Heard, 212-908-0214
John Bella, Jr., 212-908-0243
or
Media Relations:
Sandro Scenga, 212-908-0278

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