S&P Ratings on Various Toyota Lease Securities on Watch Negative

29 March 2000

    NEW YORK, March 29 Standard & Poor's today placed its
ratings on the senior asset-backed certificates of Toyota Auto Lease Trust
1997-A, Toyota Auto Lease Trust 1998-A, Toyota Auto Lease Trust 1998-B, and
Toyota Auto Lease Trust 1998-C on CreditWatch with  negative implications
(see list).
    The rating actions reflect higher-than-expected return rates and
lower-than-expected residual realization.
    The rating actions do not affect the ratings on Toyota's auto loan
securitizations nor does it affect Toyota Motor Corp. and subsidiaries'
triple-'A' corporate credit rating and 'A-1'-plus commercial paper rating.
    Seven classes of publicly rated senior securities with an aggregate
outstanding balance of approximately US$2.2 billion are affected. The A-1
classes in the 1998-A (US$148 million), 1998-B (US$335 million), and 1998-C
(US$189 million) transactions are not affected by the rating actions because
of the sequential-pay structure of the deals, which serves to shield the A-1
classes from the full impact of the deterioration in residual losses. Class A-
1 (US$410 million) in the 1997-A securitization has already been paid in full.
    Leases with 24- and 36-month terms, comprising the highest pool
concentrations in each transaction, have experienced the most significant
deterioration with current return rates that are about twice as high as 1997
levels. This adverse performance is attributed in part to aggressive
competition among auto manufacturers and lessors, increasing diversity of
vehicle and accessorization choices, changing consumer behavior, increased
used car supply levels, and weak new and used car pricing. Credit defaults
are within expected levels for all securitizations.
    Standard & Poor's will continue to monitor return rates and residual
losses for each of these transactions. -- CreditWire

    RATINGS (PUBLICLY RATED CLASSES) ON CREDITWATCH NEGATIVE

    Toyota Auto Lease Trust                      TO               FROM
    1997-A US$650 million 6.35% class A-2        AAA/Watch Neg    AAA
    1997-A US$72.75 million 6.45% class A-3      AAA/Watch Neg    AAA
    1998-A ITL543.6 billion class A-2            AAA/Watch Neg    AAA
    1998-B US$575 million 5.45% class A-2        AAA/Watch Neg    AAA
    1998-B US$96.4 million 5.50% class A-3       AAA/Watch Neg    AAA
    1998-C US$424.5 million adj. rate class A-2  AAA/Watch Neg    AAA
    1998-C US$72.8 million adj. rate class A-3   AAA/Watch Neg    AAA