GMAC 1992-A CLASS A ASSET BACKED CERTIFICATES RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
GMAC 1992-A CLASS A ASSET BACKED CERTIFICATES RATED 'AAA' BY FITCH
-- FITCH FINANCIAL WIRE --
NEW YORK, Jan. 30 /PRNewswire/ -- GMAC 1992-A Grantor Trust, $1.9 billion Class A Asset Backed Certificates are rated "AAA" by Fitch. The "AAA" rating is based on the excellent characteristics of the underlying receivables, the level of subordination, excess servicing and the servicing capabilities of General Motors Acceptance Corp. In addition, prioritization of cash receipts and the legal structure provide for timely payment of principal and interest to the certificateholders.
The certificates are secured by loans to finance new automobiles and light trucks originated on or after Jan. 1, 1988 and have original terms ranging from 24 to 60 months. No receivable will have any payment past due. The weighted average seasoning is a strong 24 months, demonstrating the borrowers' willingness and ability to make the monthly payments. Moreover, since the maximum original term is only 60 months, seasoning provides for a greater reduction in the loan balance, thereby reducing the loss exposure in the event of a borrower default. In addition, the pool is geographically well diversified, with concentrations of 10 percent in California, 9 percent in Texas, 9 percent in Illinois, and 8 percent in New York.
Credit enhancement will be provided by a 7.5 percent subordinated class and a subordination spread account for liquidity. Fitch believes that 7.5 percent subordination provides substantial loss protection for the "AAA" rating because of the strong loan characteristics. The lower level of subordination for this transaction, compared to 9 percent for previously issued GMAC issues, is based upon the weighted average seasoning of 2 years, as well as the 7 percent excess spread, which is available to cover monthly shortfalls and fund the subordination spread account.
GMAC's origination standards are based on a distinct credit scoring model developed by GMAC. This model, which incorporates numerous factors, screens for credit-worthy borrowers. GMAC's 72 years of experience in auto financing provides a proven track record as a basis for evaluating potential losses on the pool.
/CONTACT: Suzanne Mistretta, 212-908-0500, or Mary Griffin, 212-908-0537, both of Fitch/
(GM) CO: General Motors Acceptance Corp. ST: Michigan IN: AUT FIN SU: RTG SH -- NY057 -- 5212 01/30/92 11:45 EST