NEW YORK — Fitch Ratings noticed losses declined for its
prime and subprime auto loan ABS indices for the third consecutive month.

Analysts found the drops coincided with three consecutive
monthly declines in the U.S. unemployment rate and lower jobless claims.

"If these trends continue and U.S. consumers remain resolute
in their auto loan payments, we would expect a positive impact on all our indices,"
said Hylton Heard, Fitch's senior director of U.S. structured finance and asset-backed
securities.

Fitch's prime 60-day delinquency index dropped to 0.29
percent in April, down 12 percent month-over-month. The rate was also 12
percent lower year-over-year.

Analysts also determined prime annualized net losses sank 27
percent from March as April's reading settled at 0.24 percent. They pointed out
annualized net losses were 40 percent higher than the 0.14 percent reading
posted a year earlier, which was a record low,

"But performance is still strong," Heard said.

Furthermore, prime cumulative net losses came in at 0.29
percent, according to Fitch, marking a 3-percent drop month-over-month and
almost 30 decrease year-over-year.

Turning over to the subprime sector, Fitch indicated subprime
60-day delinquencies dropped for a third consecutive month in April to 2.68
percent. That level was 11 percent lower than March's reading, but 15 percent higher
than the same month last year.

Analysts added that subprime annualized net losses ended
April at 4.1 percent, a 12-percent drop from March and 1 percent below April of
last year.

"Robust credit underwriting standards in the 2009-2012
vintages, combined with healthy wholesale vehicle market over the past two
years, have supported prime asset performance," Heard said.

However, some softening in the wholesale vehicle market has
begun, as Fitch expected, with increased supply in the market in 2013," he
continued.

"Fitch expects loss rates to increase in 2013, albeit only
marginally from current levels, with no material impact on asset performance,"
Heard went on to say.

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