NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has assigned Rating Outlooks to 33 classes totaling $4.7 billion U.S. subprime auto loan asset-backed securities (ABS) issued from 17 issuance trusts.

The Rating Outlooks are summarized as follows:

--20 classes (60.6%): Rating Outlook Stable;

--13 classes (39.4%): Rating Outlook Negative.

As detailed in Fitch's Sept. 11, 2008 report 'Introducing Rating Outlooks for U.S. Structured Finance Bonds', Rating Outlooks are intended to be forward looking and indicate the likely direction of any rating change over a one- to two-year period. Given a relatively short weighted average life of auto ABS tranches, these Rating Outlooks indicate a potential rating action within a 12-month period. Rating Outlooks may be Positive, Negative, Stable, or, occasionally, Evolving. Transactions that rely on the rating of an insurance provider to guarantee payment of principal on the notes are subject to the ratings of the insurance provider as is the case with each of the 13 classes placed on Rating Outlook Negative.

Rating Outlooks will be reviewed concurrently with the rating review for the transaction and published in conjunction with the long-term rating (short-term ratings of 'F1+' are excluded from Rating Outlooks). Fitch's rating action commentary will include rationale for the Rating Outlook along with rationale for the long-term rating.

Fitch analyzes both quantitative and qualitative factors when assigning Rating Outlooks to auto ABS. Fitch's quantitative analyses include both transaction specific and macro factors as well as the loss performance of the underlying collateral. Utilizing a historical auto ABS loss curve and a transaction specific initial base case cumulative net loss (CNL) assumption, Fitch derives a transaction specific expected CNL. The derived expected CNL is then compared to a transaction's actual CNL. Depending on the relative comparison of the actual CNL vs. the expected CNL, the transactions are identified as in line with the initial expectations, underperforming initial expectations, or performing better than initial expectations. Further, upon completion of the loss performance evaluation, Fitch reviews the capital structure of each transaction to determine expected tranche specific credit enhancement based on current and projected performance.