DBRS Rates Capital Auto Receivables Asset Trust 2005-1

Dominion Bond Rating Service (“DBRS”) has rated General Motors Acceptance Corporation’s Capital Auto Receivables Asset Trust 2005-1 (“CARAT 2005-1”) transaction as noted above.

The collateral transaction that backs the CARAT 2005-1 trust is very similar to the CARAT 2004-2 trust, issued in December 2004. The 2005-1 trust is different in the following ways:
(1) There is a slightly higher bucket of longer dated loans in this transaction (25.6% compared with 17% in the 2004-2 transaction);
(2) This transaction has a slightly higher excess spread amount (3.19% compared with 2.44% in the 2004-2 transaction);
(3) The overcollateralization for the 2005-1 trust is available at closing. In the 2004-2 transaction, overcollateralization grew from 1.0% to 1.5% through trapping excess spread and the senior notes paying down; and
(4) There is no revolving period in the 2005-1 trust as there was in the 2004-2 transaction.

Credit support for the publicly rated classes is provided by subordination, overcollateralization, cash reserve, and excess spread. Credit support for the private class is provided by overcollateralization, cash reserve, and excess spread.

The AAA credit enhancement includes 8.0% subordination from Class B, C, and D Notes, overcollateralization, and a reserve account. Excess spread is also available on a monthly basis. Overcollateralization will amount to 1.0% of the initial aggregate receivables principal balance. The reserve account is a percentage of the initial aggregate receivable principal balance, but the reserve account will amortize as the senior notes amortize. Class A-1, Class A-2a, Class A-3, Class A-5, and Class B notes each have swaps notes. These investors receive floating rate payments from the swap counterparty, HSBC Bank, so the ratings on those classes are subject to the swap counterparty’s ability to make the floating rate payments.