Fitch Rates National City Auto Receivables 2004-A 'F1+/AAA'.

Business Editors

NEW YORK--(BUSINESS WIRE)--Feb. 26, 2004

Fitch Ratings has assigned the following ratings to the receivables-backed notes issued by National City Auto Receivables Trust 2004-A as listed below:

-- $178,000,000 Class A-1 1.10% asset-backed notes 'F1+';

-- $197,000,000 Class A-2 1.50% asset-backed notes 'AAA';

-- $240,000,000 Class A-3 2.11% asset-backed notes 'AAA';

-- $200,020,000 Class A-4 2.88% asset-backed notes 'AAA';

-- $36,650,000 Class B 2.45% asset-backed notes 'A';

-- $10,785,978 Class C 2.99% asset-backed notes 'BBB'.

This is National City Bank's second auto securitization, after 2002-A which closed at the end of March 2002. The ratings on the notes and certificates reflect the high quality of the underlying retail installment sales contacts, available credit enhancement, the sound legal and cash flow structure, and the underwriting strength and servicing capabilities of National City Bank (rated 'AA-' by Fitch). The class A notes have an initial credit enhancement of 5.75% consisting of 5.50% subordination and a 0.25% reserve account. Enhancement is expected to grow to 6.75% through the application of excess spread which will fund the reserve account to its target level of 1.25% of the initial principal balance. The reserve account floor is 1.0% of the initial principal balance. Both class B and C notes are initially retained by the seller.

The collateral securing the notes is a pool of prime automobile loan receivables secured by new (56.2%) and used (43.8%) automobile and light duty trucks indirectly originated by National City Bank through its network of 2,730 dealers. The receivables have a weighted average APR of 6.79%, significantly lower than 8.71% of the previous securitization, due to the favorable interest rate environment. With a weighted average original maturity of 64 months and a weighted average remaining term of 60 months, the seasoning of the collateral results in 4 months, like the 2002-A transaction. The pool is concentrated in the Midwest, with Ohio, Pennsylvania, and Michigan representing 42.9%, 13.7%, and 11.4% of the pool, respectively. As in the previous transaction, the heavy concentration in Ohio comes at no surprise as National City is headquartered in Cleveland and has a substantial dealer network in that state. The negative effect of a potential regional weakness was considered in Fitch's cash flow stresses.

Interest and principal are payable monthly, beginning March 15, 2004. Under the modified pro rata distribution, class A-1 will receive 100% of the principal distributable amount until retired. Then, class A-2 through A-4 will pay down sequentially, but pro rata with the class B and C notes. The class B and C notes will remain subordinated to the class A notes throughout the life of the transaction. However, if, on any payment date, the three-month average of annualized net losses meets or exceeds 4.50%, principal payment switches to a sequential paydown beginning with the highest rated class.