Fitch Rts Capital Auto Receivables Asset Trust 2002-5 'AAA'

Business Wire, Nov 13, 2002

Business Editors

NEW YORK--(BUSINESS WIRE)

Nov. 13, 2002: Fitch rates Capital Auto Receivables Asset Trust (CARAT) 2002-5 as follows:

--$485,000,000 Floating-Rate Class A-1 Asset-Backed Notes 'AAA';

--$1,035,000,000 Floating-Rate Class A-2a Asset-Backed Notes 'AAA';

--$325,000,000 1.71% Class A-2b Asset-Backed Notes 'AAA';

--$600,000,000 Floating-Rate Class A-3a Asset-Backed Notes 'AAA';

--$260,000,000 2.30% Class A-3b Asset-Backed Notes 'AAA';

--$711,118,000 2.92% Class A-4 Asset-Backed Notes 'AAA';

--$105,653,966.58 2.80% Asset-Backed Certificates 'A '.

The ratings are based upon the available credit enhancement, terms of the interest rate swap, financial strength of the swap counterparty (Citibank, NA rated 'AA ' by Fitch Ratings) and contingent swap counterparty (GMAC, rated 'A-' by Fitch Ratings), the transaction's sound legal structure, and the high quality of the retail auto receivables originated and serviced by General Motors Acceptance Corporation (GMAC).

The loans securitized in the 2002-5 transaction were originated under special incentive rate financing programs designed to encourage purchases of new General Motors cars and light trucks. The resulting low weighted average APR of 2.21% is compensated for by a bond value calculation used to provide 'synthetic' excess spread. In the bond value calculation, the aggregate collateral of $3,850,059,521.10 is amortized with zero defaults and zero prepayments and monthly payments are discounted back to a net present value using a 7.0% discount rate (results in an effective APR on the collateral of 7.0%). The net present value of $3,521,771,966.58 (the aggregate discounted principal balance) is used to calculate bond sizes and the initial reserve account balance.

The $485,000,000 class A-1 notes are not publicly offered. GMAC will initially retain 1% of the certificates balance. Interest payments are expected to be distributed on the 15th of each month beginning on December 16, 2002. Once the class A-1 notes are paid down, the certificates receive a pro-rata share of principal collections with the classes A-2 through A-4 notes paying down sequentially. The reserve fund is available for both class A notes and certificates interest or principal shortfalls.

Initial credit enhancement for the Class A notes is 4.50% of the initial aggregate discounted principal balance, and consists of 3.00% subordination from the Certificates and the 1.50% initial deposit to the reserve account. Certificates, as a percent of the initial aggregate discounted principal balance, benefit from 1.50% enhancement provided by the reserve account.

As in the last seven transactions, only receivables backed by loans on new cars and light trucks are included. The credit quality of the 2002-5 pool is one of the highest, as evidenced by the credit scores. The pool is initially well diversified geographically with Texas (15.79%) California (13.08%), Michigan (9.14%), Michigan (6.73%), and Florida (7.08%) having the highest state concentrations. As of the cutoff date, the receivables had a weighted average remaining maturity of approximately 46.2 months and weighted average seasoning of approximately 7.0 months.

Based on the loss statistics of GMAC's prior securitizations, as well as GMAC's U.S. retail portfolio performance, Fitch Ratings expects strong performance from the pool of receivables in the 2002-5 transaction. For the six months ending June 30, 2002, GMAC's net retail portfolio of approximately 4.42 million contracts had 60 day delinquencies as a percentage of contracts outstanding of 0.21%, and net losses as a percentage of the average receivables were 0.74%.