Fitch Upgrades Wachovia Auto Loan Owner Trust 2007-1 and 2008-1

NEW YORK--()--Fitch Ratings has upgraded six classes of the Wachovia Auto Loan Owner Trust series 2007-1 and 2008-1 transactions as part of its on going surveillance process.

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

The revisions of the Rating Outlooks to Stable and Positive from Negative for the notes reflect the sequential payment structure of these transactions and improvement in collateral performance in the past 12 months.

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.

The ratings actions for series 2007-1 are as follows:

--Class A-3a notes affirmed at 'AAAsf', Outlook Stable

--Class A-3b notes affirmed at 'AAAsf', Outlook Stable

--Class B notes upgraded to 'AAAsf' from 'AAsf', Outlook Stable;

--Class C notes upgraded to 'AAsf' from 'Asf', Outlook to Positive from Stable;

--Class D notes upgraded to 'Asf' from 'BBBsf', Outlook to Stable from Negative;

--Class E notes affirmed at 'BBsf', Outlook to Stable from Negative.

The ratings actions for series 2008-1 are as follows:

--Class A-3 notes affirmed at 'AAAsf', Outlook Stable;

--Class A-4 notes affirmed at 'AAAsf', Outlook Stable;

--Class B notes upgraded to 'AAAsf' from 'AAsf', Outlook Stable

--Class C notes upgraded to 'AAsf' from 'Asf', Outlook to Positive from Negative;

--Class D notes upgraded to 'Asf' from 'BBB-sf', Outlook to Positive from Negative;

--Class E notes affirmed at 'BB-sf'; Outlook to Stable from Negative.

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

Applicable Criteria and Related Research:

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

--'Global Structured Finance Rating Criteria' dated Aug. 16, 2010.

Applicable Criteria and Related Research:

U.S. Auto Loan ABS Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=505158

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547326

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Contacts

Fitch Ratings
Primary Analyst:
Daniel Forman
Analyst
+1-212-908-0370
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst:
Benjamin Tano
Director
+1-212-908-0871
or
Committee Chairperson:
Bradley Sohl
Senior Director
+1-312-368-3127
or
Media Relations:
Sandro Scenga
+1-212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst:
Daniel Forman
Analyst
+1-212-908-0370
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst:
Benjamin Tano
Director
+1-212-908-0871
or
Committee Chairperson:
Bradley Sohl
Senior Director
+1-312-368-3127
or
Media Relations:
Sandro Scenga
+1-212-908-0278
sandro.scenga@fitchratings.com