S&P Asgns Rtgs to DaimlerChrysler Auto Tr 2001-B Nts

    NEW YORK--Standard & Poor's--June 8, 2001-- Standard & Poor's assigned its ratings to DaimlerChrysler Auto Trust 2001-B'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 $52 million compared to $49 million in the previous transaction. This increase was the result of discounting loans below 5.25% at 5.25% for this transaction compared with discounting loans below 4.75% at 4.75% for the previous transaction. In addition to the above credit enhancement, the ratings on the 2001-B securitization are based on the extensive amount of data obtained from Chrysler Financial Co. LLC (Chrysler Financial), the solid credit quality of the underlying pool of automobile loans, a sound legal structure, and about 9.0% in total credit enhancement.
    This is Chrysler Financial's second term securitization of the year, which consists of $1.5 billion in triple-'A' securities and $425 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 $60.4 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, pay 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 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

Issue                                    Amount (mil.)     Rating
DaimlerChrysler Auto Trust 2001-B
Class A-2 4.25% asset-backed notes           615.0           AAA
Class A-3 4.85% asset-backed notes           480.0           AAA
Class A-4 5.32% asset-backed notes           405.0           AAA