Fitch Rates GEARS 2005-A; Issues New Issue Report

Business Wire, Dec 21, 2005

NEW YORK -- Fitch Ratings has issued a new issue report on Global Execution Auto Receivables Securitization (GEARS) 2005-A. The asset-backed notes were issued on Nov. 30, 2005 and were rated as follows:

-- Interest-only class A fixed-payment notes 'F1 ';

-- $150,000,000 floating-rate class A-P notes 'AAA';

-- $849,000,000 4.830% class A-1 notes 'AAA';

-- $970,500,000 4.840% class A-2 notes 'AAA';

-- $798,000,000 4.880% class A-3 notes 'AAA';

-- $90,000,000 floating-rate class B notes 'AA';

-- $52,500,000 floating-rate class C notes 'A';

-- $33,752,850 floating-rate class D-1 preferred shares 'BBB';

-- EUR28,660,000 floating rate class D-2 preferred shares 'BBB';

-- $17,500,000 8.220% class E-1 notes 'BB';

-- $5,000,000 floating-rate class E-2 notes 'BB'.

The securities are backed by a portfolio of retail installment sale contracts secured by new and used automobiles, light-duty trucks, and vans indirectly originated and currently serviced by Bank of America, N.A. (BANA; rated 'F1 /AA-' by Fitch).

The ratings on the securities are based on the quality of the receivables, initial credit enhancement for the class A notes of 10.25% (provided by 7.75% subordination and 2.50% funded reserve account), availability of excess spread to fund the reserve account to its target level of 2.75% of the current collateral balance, and the transaction's sound legal and cash flow structure. Class D-2 preferred shares are denominated in Euros, while remaining classes are denominated in U.S. dollars.

Like most auto loans securitizations, risks to investors include poor asset performance, receivership/insolvency of the seller/servicer and manufacturers, and economic weakness. Fitch is of the opinion that the quality of both the receivables and the obligors, coupled with the available structural credit enhancement, enable the noteholders and equityholders to receive full payments of interest and principal in accordance with the terms of the transaction documents.

Class A, B and C notes are issued by co-issuers GEARS, Ltd. 2005-A and GEARS LLC, 2005-A; class D preferred shares are issued by GEARS, Ltd. 2005-A; and class E notes are issued by GEARS 2005-A Auto Owner Trust.

The class A, B and C notes and the class D preferred shares have an indirect interest in the pool of receivables contributed at closing and a direct interest in underlying class A, B, C and D notes which have a direct interest in the receivables pool. The class E notes have a direct interest in the receivables pool.

Class A-IO has no principal amount or interest rate. On each distribution date, a fixed payment is applied against class A-IO, which will continue for the first six distribution dates until the class is amortized, and these payments will rank senior to interest payable on the class a notes. Interest on the securities is distributed monthly, commencing Dec. 20, 2005. Principal is allocated on a sequential basis, starting with pro rata allocations to class A-1 notes and A-P notes. When class A-1 is paid in full, the remaining class A, B, and C notes amortize sequentially. The class D preferred shares receive capital distributions after classes A, B and C notes are paid in full. Class E notes receive principal following payment in full of the underlying class A, B, C and D notes.

The pool contains 49.41% new automobiles and light-duty trucks and has a weighted average (WA) annual percentage rate (APR) of 7.25%. The high credit quality of the borrowers is evidenced by the high weighted average Fair, Isaac & Co., Inc. (FICO) score of the receivables and historical performance. With a WA original term of 65.81 months and a remaining term of 54.49 months, the transaction benefits from 11.02 months of seasoning. Consistent with a recent industry trend of longer original term loans, the majority of loans in GEARS contains terms exceeding 60 months. Out of the 59.80% of loans with terms between 61 and 84 months, GEARS contains 0.66% of loans between 73 and 84 months.

BANA has exhibited continued improvement in its U.S.-managed portfolio. Both delinquencies and net losses are down when compared with years ending December 2000. As of Sept. 20, 2005, total delinquencies were 1.40%, and net losses were at 0.80%.

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.