Car Insurance

Recent improving performance trends in prime auto loan asset-backed securities (ABS) continued in May, according to ‘In the Auto ABS Driver’s Seat,’ a Fitch Ratings newsletter released today. Fitch’s prime auto loan ABS delinquency and prime annualized net loss (ANL) indexes both posted further improvements in May.

Delinquencies of 60 plus days or more dropped 4.8% in May to 0.40%, versus that of April. Delinquencies are 23.1% lower through May 2005 versus the same period in 2004, and the index is at its lowest level since June 2002. Prime ANL dropped 21.4% in May to 0.66%, the 16th consecutive monthly decline and the lowest level in more than five years. Prime cumulative net losses (CNL) were 0.85% in May, down 3.4% from April and 11.4% lower than in May 2004.

In the subprime sector, delinquencies of 60 plus days or more rose to 2.30%, up 8% versus April, but 4.6% lower than one year ago. ANL continued to improve in May dropping 2.8% to 4.86%, 26% lower than in May 2004, reaching its lowest level since June 2001. However, volatility persists in this sector, and delinquencies and losses are expected to pick up in the summer months, which are seasonally a weaker period.

The latest edition of ‘In the Auto ABS Driver’s Seat,’ a monthly newsletter that tracks retail auto loan performance, auto industry trends, and developments in the auto ABS securitization market, is available on the Fitch Ratings web site at www.fitchratings.com in the ‘Structured Finance’ sector page under ‘ABS’ in the ‘Newsletters’ section.

Fitch’s rating definitions are available on the agency’s public web site, www.fitchratings.com. Published ratings, criteria and methodologies, and relevant policies and procedures are also available from this site, at all times. This document will remain on the public site for seven days.