S&P Asgns Rtgs to DaimlerChrysler Auto Trust 2001-A

    NEW YORK--Standard & Poor's--March 13, 2001-- Standard & Poor's today assigned its ratings to DaimlerChrysler Auto Trust 2001-A's $1.5 billion asset-backed notes (see list).
    The ratings reflect credit enhancement in the form of 3.50% of initial overcollateralization; 3.25% subordinated asset-backed certificates; a 0.25% fully funded reserve account; and about 1.0%-2.0% in excess spread. The size of the yield supplement overcollateralization amount (YSOA) was $49 million compared with $133 million in the previous transaction. This reduction was the result of discounting loans below 4.75% at 4.75% for this transaction compared with discounting loans below 7.5% at 7.5% for the previous transaction. Discounting the low interest rate loans by an amount less than the cost of funds and servicing reduced the overall excess spread for this transaction. In addition to the above credit enhancement, the ratings on the 2001-A securitization are based on the extensive amount of data obtained from Chrysler Financial Co. LLC, the solid credit quality of the underlying pool of automobile loans, a sound legal structure, and about 9% in total credit enhancement.
    This is Chrysler Financial's first term securitization of the year, which consists of $1.5 billion in triple-'A' rated securities and $426 million of retained notes, certificates, and overcollateralization, backed by just under $2.0 billion in auto loan receivables. All credit enhancement is measured as a percent of initial securities, which is defined as the initial balance of the class A-1 through class A-4 notes plus the $60.5 million initial principal balance of subordinated asset-backed certificates.
    Until the class A-1 notes are paid in full, all monthly collected funds will be used to pay the servicing fee, note interest, replenish the reserve account, and pay principal on the class A-1 notes until paid in full. Thereafter, monthly principal will be applied sequentially to the remaining securities while maintaining overcollateralization at 4.0% of the remaining discounted pool balance with the remainder being released to DaimlerChrysler Retail Receivables LLC.
    The reserve account will be fully funded at 0.25% at closing and the specified reserve account balance will remain at this level as long as the securities remain outstanding. Thus, as the receivables amortize, the reserve account will grow as a percent of assets outstanding. The reserve account will be used to pay shortfalls in interest, pay principal on the notes if a class is not paid in full on its legal final payment date, and to pay-down notes if overcollateralization is depleted.
    Chrysler Financial, with a total serviced retail auto portfolio of $33.8 billion, experienced improved loss and delinquency results during 2000. Net losses have improved to 0.78% of the average gross retail contracts outstanding in 2000 and delinquencies have improved to 1.71% at year-end 2000, Standard & Poor's said.---CreditWire

NEW RATINGS ASSIGNED

DaimlerChrysler Auto Trust 2001-A
Issue                                                 Rating
Class A-2 $790 million 4.98% asset-backed notes       AAA
Class A-3 $370 million 5.16% asset-backed notes       AAA
Class A-4 $340 million 5.40% asset-backed notes       AAA