TEXT-Fitch on prime, subprime auto ABS

Feb 7 - U.S. auto ABS will continue to lead ABS issuance in the coming
year, but with increased volume and strong performance history comes the risk of
guideline deterioration, according to Fitch Ratings in its latest US Structured
Finance Snapshot.

Increased production also challenges vehicle value stability though
manufacturers have indicated that they are determined to maintain a disciplined
vehicle production strategy.

Fitch expects the volume of subprime auto loans to increase even more
significantly than prime loans in 2012 and issuance will come from a wider
variety of issuers. This sector is particularly vulnerable to the risks of
excessive or irrational competition.

While the space will likely be dominated by established originators who have
securitized through the recession, issuer's long previously shut out of the ABS
market may return along with some private equity funded start-ups. Fitch
believes that only a select few of the strongest originators will be able to
earn 'AAAsf' ratings for ABS transactions.

Fitch's quarterly Snapshot provides a detailed analysis of developments in the
structured finance sector was created in response to investor requests for high
quality, transparent and timely research and ratings analysis. This report
covers the US region, with a separate report covering EMEA structured finance
available at 'www.fitchratings.com'. The US Snapshot is also available by
clicking on the link at the end of the press release.

Contact:

John Bella
Managing Director
+1-212-908-0243

Zanda Lynn
Managing Director
+1-212-908-0601

Additional information is available at 'www.fitchratings.com'

Applicable Criteria and Related Research:
U.S. Structured Finance Snapshot