Fitch Expects to Rate DaimlerChrysler Auto Trust 2004-B 'F1+/AAA/A'

NEW YORK--July 21, 2004--Fitch Ratings expects to rate DaimlerChrysler Auto Trust (DCAT) 2004-B as follows:

-- $380,000,000 1.72% class A-1 asset-backed notes 'F1+';

-- $375,000,000 2.48% class A-2 asset-backed notes 'AAA';

-- $480,000,000 3.18% class A-3 asset-backed notes 'AAA';

-- $220,000,000 3.71% class A-4 asset-backed notes 'AAA';

-- $45,000,000 3.89% class B asset-backed notes 'A'.

The securities are backed by a pool of retail installment sales contracts secured by new and used automobiles and light-duty trucks originated by DaimlerChrysler Services North America LLC (DCS). The ratings of the notes reflect the high quality of the underlying retail installment sales contracts, available credit enhancement, availability of excess spread to increase the overcollateralization (OC) to its target level, the sound legal and cash flow structure, and the underwriting strength and servicing experience of DCS. As for the past 10 DCAT transactions, 2004-B incorporates a yield supplement OC account (YSOA), which effectively creates synthetic yield by boosting the APR from 6.12% to 8.32%.

The class A notes are initially supported by 5.00% credit enhancement consisting of the 3.00% class B notes, 1.75% OC, and a 0.25% fully funded nondeclining reserve account. Enhancement is expected to grow to 8.25% for the class A notes and 5.25% for the class B notes through the application of excess spread to fund the OC target level of 5.00% of the current balance minus the YSOA.

The credit quality of the obligors backing the 2004-B transaction is one of the highest, as measured by DCS's proprietary credit-grading matrix and compared with previous DCAT deals. As of the statistical cutoff date, the receivables had a new/used composition of 93.07% and 6.93%, respectively. The weighted average original maturity of the pool was 63.36 months, and the weighted average remaining term was 54.04 months resulting in approximately 9.32 months of collateral seasoning. The pool is well diversified geographically, with the largest state concentrations in Texas (11.9%), California (7.9%), Florida (5.9%), and Pennsylvania (5.8%). No other state accounts for more than 5.0% of the pool. Geographic diversification helps insulate the transaction against regional economic downturns.

Based on DCS's prime retail portfolio performance, Fitch expects strong performance from the pool of receivables in the 2004-B securitization. As of year-to-date June 2004, DCS's U.S. retail portfolio consisted of approximately 2.5 million loans totaling about $40.5 billion, an increase of 3.13% compared with the same period in 2003. Total delinquencies were at 1.60% for the first six months of 2004, dropping 30 basis points (bps) from last year. Net losses remained at 0.91% through June 2004, an improvement of 0.16%, compared with year-to-date June 2003.