Fitch Affirms Wachovia Auto Loan Owner Trust 2007-1 & 2008-1

NEW YORK, Nov 13, 2009 (BUSINESS WIRE) -- Fitch Ratings has affirmed all classes of the Wachovia Auto Loan Owner Trust 2007-1 and 2008-1 transactions as part of its on going surveillance process.

Current loss performance for both transactions is worse than originally expected and the future, projected performance for the transactions has been revised accordingly.

Despite higher than expected cumulative net losses (CNL) and delinquencies, the cash flows available to service the outstanding debt in the transactions currently continues to allow credit enhancement (CE) to build on a nominal basis for both transactions. Fitch analyzed the transactions incorporating stresses of the revised base case CNL assumptions, the timing of the remaining losses and various prepayment assumptions. Based on the analysis, Fitch concluded that CE is currently adequate to support the existing ratings under Fitch's revised assumptions and therefore affirms all classes of outstanding notes for both transactions.

The revisions of the Rating Outlooks to Stable from Negative for certain notes reflect the sequential payment structure of these transactions.

The securities are backed by a pool of new and used automobile and light-duty truck installment loans originated by WFS, a subsidiary of Wachovia.

Fitch affirms and revises Outlooks on Wachovia Auto Loan Owner Trust 2007-1 as follows: --Class A-3a notes at 'AAA'; Outlook to Stable from Negative; --Class A-3b notes at 'AAA'; Outlook to Stable from Negative; --Class B notes at 'AA'; Outlook to Stable from Negative; --Class C notes at 'A'; Outlook to Stable from Negative; --Class D notes at 'BBB'; Outlook Negative; --Class E notes at 'BB'; Outlook Negative.

Fitch affirms and revises Outlooks on Wachovia Auto Loan Owner Trust 2008-1 as follows: --Class A-2a notes at 'AAA'; Outlook Stable; --Class A-2b notes at 'AAA'; Outlook Stable; --Class A-3 notes at 'AAA'; Outlook Stable; --Class A-4 notes at 'AAA'; Outlook to Stable from Negative; --Class B notes at 'AA'; Outlook to Stable from Negative; --Class C notes at 'A'; Outlook Negative; --Class D notes at 'BBB-'; Outlook Negative; --Class E notes at 'BB-'; Outlook Negative.

The above ratings reflect the application of Fitch's criteria 'Rating U.S. Auto Loan-Backed Securitizations: A Tune Up' dated May 30, 2007; and 'Global Structured Finance Rating Criteria' dated Sept. 30, 2009.

Additional information is available at www.fitchratings.com.

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SOURCE: Fitch Ratings CONTACT: Fitch Ratings, New York Hylton Heard, 212-908-0214 David Petu, CFA, 212-908-0280 Joachim Over, 212-908-0830 or Media Relations: Sandro Scenga, 212-908-0278 Email: [e-mail] Copyright Business Wire 2009 -0- KEYWORD: United States

North America

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