Fitch Rates Chase Manhattan Auto Owner Trust 2004-A 'AAA'

Business Wire, March 10, 2004

Business Editors

NEW YORK--(BUSINESS WIRE)--March 10, 2004

Fitch rates the Chase Manhattan Auto Owner Trust 2004-A as follows:

-- $309 million class A-1 1.08% A-B notes 'F1+';

-- $378 million class A-2 1.45% A-B notes 'AAA';

-- $462 million class A-3 2.08% A-B notes 'AAA';

-- $411 million class A-4 2.83% A-B notes 'AAA';

-- $40 million 2.58% A-B certificates 'A+'.

The securities are backed by a pool of retail installment sales contracts secured by new and used automobiles and light-duty trucks originated by Chase Manhattan Bank USA, NA. The ratings of the notes and certificates reflect the high quality of the underlying retail installment sales contracts, available credit enhancement, the sound legal and cash flow structure, and the underwriting strength and servicing experience of Chase Manhattan Bank USA, NA (Chase USA).

The class A notes have initial credit enhancement of 3.75% consisting of the 2.50% asset-backed certificates and the 1.25% initial deposit to the reserve account. The asset-backed certificates are supported by initial credit enhancement of 1.25% in the form of a cash reserve. Enhancement is expected to grow to 4.75% for the class A notes and 2.25% for the certificates through the application of excess spread to fund the reserve account to its target level of 2.25%. Additionally, 2004-A is the sixth Chase auto securitization to incorporate a yield supplement account to compensate for loans with contract rates below the sum of the 1% servicing fee and weighted average coupon of the notes and certificates at closing.

As of the statistical cut-off date, the receivables had a weighted average APR of 5.51%. The weighted average original maturity of the pool was 61.53 months and the weighted average remaining term was 61.28 months, resulting in approximately 0.25 months of collateral seasoning. Chase Automotive Finance's underwriting strength is evidenced by the fact that the majority of the pool has FICO scores in excess of 700. The pool is well diversified geographically, with the largest state concentrations in California (13.74%), Texas (9.64%), New York (7.70%), New Jersey (5.88%), Illinois (5.75%), and Pennsylvania (5.60%). No other state accounts for more than 5% of the pool. Geographic diversification helps insulate the transaction against regional economic downturns.

Interest and principal are payable monthly, beginning in April 2004. The class A-1 and A-2 notes receive all principal payments sequentially until retired. Thereafter, 95.62% of principal distributable is allocated sequentially among the remaining class A notes, and 4.38 of principal is distributed to the certificates. However, if the reserve account drops below 0.75% of the aggregate principal balance of the receivables as of the cut-off date, all principal is allocated to the class A notes sequentially until paid in full or the reserve account balance rises above 0.75%. Additionally, if the class A notes have been accelerated following an event of default, 100% of principal is paid to the class A notes.

Based on Chase USA's prime retail portfolio performance, Fitch expects strong performance from the pool of receivables in the 2004-A securitization. As of Dec. 31, 2003, Chase USA's retail portfolio of approximately $36.96 billion had total delinquencies and repossessions of 1.48%, and average annualized net losses were 0.43%. This compared to total delinquencies and repossessions as of Dec. 31, 2003, of 1.59%, and average annualized net losses of 0.55%.