Fitch Affirms Capital Auto Receivables Asset Trust 2007-4

CHICAGO--(BUSINESS WIRE)--Fitch Ratings affirms the Capital Auto Receivables Asset Trust 2007-4 transaction, as follows:

--Class A-3a notes at 'AAA'; Outlook Stable;

--Class A-3b notes at 'AAA'; Outlook Stable;

--Class A-4 notes at 'AAA'; Outlook Stable;

--Class B notes at 'A'; Outlook Stable;

--Class C notes at 'BBB'; Outlook revised to Stable from Negative;

--Class D notes at 'BB'; Outlook revised to Stable from Negative.

The rating affirmations reflect improvements in performance and increases in credit enhancement available to the notes since Fitch's last review. Though the transaction has experienced a higher loss pace than prior transactions, some stabilization in performance has been experienced as the loss pace has slowed in recent months. As of the June 2010 collection period, the transaction has total delinquencies of 5.57% and net losses of 2.94%.

Despite the higher losses and delinquencies, the cash flows available to service the outstanding debt in the transaction currently continue to allow credit enhancement (CE) to build on a nominal basis. Fitch analyzed the transaction incorporating various stressed CNL assumptions. Based on the analysis, Fitch concluded that CE is currently adequate to support the existing ratings under Fitch's stressed assumptions and therefore affirms all classes of outstanding notes. In addition, as a result of the positive performance trends and increasing CE, the Outlooks on the class C and D notes are being revised to Stable from Negative.

Applicable Criteria available on Fitch's web site at 'www.fitchratings.com':

--'U.S. Auto Loan ABS Rating Criteria,' dated March 18, 2010;

--'Global Structured Finance Rating Criteria', dated Sept. 30, 2009.

Additional information is available at 'www.fitchratings.com'.

Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=469406

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