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Fitch Rates Ford Credit Auto Owner Trust 2006-B 'AAA'.

NEW YORK -- Fitch rates Ford Credit Auto Owner Trust 2006-B asset-backed notes as follows:

-- $657,000,000 class A-1 5.4048% 'F1+';

-- $470,000,000 class A-2A 5.42% 'AAA';

-- $470,000,000,000 class A-2B floating-rate 'AAA';

-- $730,000,000 class A-3 5.26% 'AAA';

-- $438,560,000 class A-4 5.25% 'AAA';

-- $87,333,000 class B 5.43% 'A';

-- $58,222,000 class C 5.68% 'BBB+';

-- $58,222,000 class D 7.12% 'BB+'.

The ratings on the notes are based upon their respective levels of subordination, the specified credit enhancement amount (funds in the reserve account and overcollateralization), and the yield supplement overcollateralization amount (YSOC, explained below). All ratings reflect the transaction's sound legal structure, the high quality of the retail auto receivables originated by Ford Motor Credit Company (Ford Credit) and the strength of Ford Credit as servicer. The class A-1 and class D notes will be initially retained by the seller.

The weighted average annual percentage rate (WA APR) in 2006-B is 5.8%. As with previous deals, the 2006-B transaction incorporates a YSOC feature to compensate for receivables with interest rates below 8.75%. The YSOC is subtracted from the pool balance to calculate bond balances and the first priority, second priority, and regular principal distribution amounts, resulting in the creation of 'synthetic' excess spread. These amounts enhance the receivables' yield and are available to cover losses and turbo the class of securities then entitled to receive principal payments.

Initial enhancement for the class A notes as a percentage of the adjusted collateral balance (collateral balance less YSOC) is 5.5% (5.0% subordination, and the 0.5% initial reserve deposit). Initial enhancement for the class B notes is 2.5% (2.0% subordination and the 0.5% reserve). Initial enhancement for the class C notes is 0.5% provided by the reserve account.

On the closing date, the aggregate principal balance of the notes will be 102% of the initial pool balance less the YSOC. The class D notes represent the undercollateralized 2%. During amortization, both excess spread and principal collections are available to reduce the bond balance. Hence, if excess spread is positive, the bonds will amortize more quickly than the collateral. It is this mechanism that ensures that the class D notes are collateralized and the specified credit enhancement level is achieved.

Furthermore, the 2006-B transaction provides significant structural protection through a shifting payment priority mechanism. In each distribution period, a test will be performed to calculate the amount of desired collateralization for the notes versus the actual collateralization. If the actual level of collateralization is less than the desired, then payments of interest to subordinate classes may be suspended and made available as principal to higher rated classes.

Based on the loss statistics of Ford Credit's prior securitizations, and Ford's U.S. retail portfolio performance, Fitch expects consistent performance from the pool of receivables in the 2006-B pool. For the six months ending June 30, 2006, average net portfolio outstanding totaled approximately $57.6 billion, total delinquencies were 2.04% and net losses were 0.60% of the average net portfolio outstanding.

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.
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Publication:Business Wire
Date:Aug 29, 2006
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