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Tranex Automobile Receivables Owner Trust Rated

25 September 1998

Tranex Automobile Receivables Owner Trust Rated by Standard & Poor's

    NEW YORK, Sept. 25 -- Standard & Poor's today assigned its
triple-'A' rating to Tranex Automobile Receivables Owner Trust's 1998-B class
A and its double-'B' rating to the trust's class B notes.
    The rating on the class A notes is based on an irrevocable and
unconditional bond insurance policy provided by Financial Security Assurance
Inc. (triple-'A' financial strength rating) that guarantees timely payment of
principal and interest.  The underlying transaction risk assumed by Financial
Security Assurance has been determined to be consistent with an
investment-grade rating based on a sound legal structure and internal credit
support. Subordination of the class B notes (7%), a reserve account, and
annual excess spread of approximately 10.3% provide a sufficient multiple of
estimated cumulative net losses.
    The double-'B' rating assigned to the class B notes, which are not
insured by Financial Security Assurance, is based on a dedicated class B
reserve account equal to 1.75% of outstanding receivables that is fully funded
at closing.  Credit support also includes excess spread that is used to retire
the class B notes after paying fees, class A interest and principal, class B
interest and principal, and funding or restoring the reserve accounts to their
requisite levels.  In addition, conservative cash flows were used to test the
transaction's ability to pay timely interest and principal by the final
maturity date of March 15, 2004.
    The transaction is structured as a sale of assets from Tranex Credit Corp.
(the originator and servicer of the contracts) to Tranex Funding L.P., and the
subsequent sale and assignment of the assets from Tranex Funding L.P. to
Tranex Auto Receivables Corp., a bankruptcy-remote special purpose
corporation.  The assets are further sold and assigned by Tranex Auto
Receivables Corp., to an owner trust.
    Tranex Credit Corp., founded in 1990, is a specialized consumer finance
company engaged in the acquisition and servicing of sub-prime retail
installment contracts secured by new and used automobiles and light duty
trucks.  Tranex's Indianapolis headquarters and recently-established branch
offices in Dallas, Portland, and Gaithersburg, Md., are currently purchasing
contracts from a network of 1,494 dealers.  Servicing is performed in the
Indianapolis headquarters.
    Despite rapid portfolio growth, Tranex has demonstrated consistent
performance.  The serviced portfolio has grown to approximately $201.3 million
as of June 30, 1998 from $149.7 million at December 31, 1997 and $93.9 million
at Dec. 31, 1996.  Delinquencies have been steadfast at approximately 5%-4.97%
for June 30, 1998 compared to 4.98% for June 30, 1997, 4.97% at December 31,
1997 and 4.62% at December 31, 1996.  While portfolio losses increased
marginally to 6.2% for the six months ended June 30, 1998 from 5.9% in 1997,
they were lower than 1996's losses of 6.6%.  In addition, the static pool
performance for Tranex's past securitizations has generally been stable with
cumulative net losses on its four oldest pools tracking closely together.
    The 1998-B receivables pool is composed of approximately $62 million in
retail installment sales contracts.  The weighted average annual percentage
rate will be approximately 19.99%.  The largest state concentration is
Maryland (17%), and the weighted average original maturity and seasoning are
57 months and less than one month, respectively. Used cars comprise nearly 92%
of the initial receivables pool.
    Standard & Poor's expects the 1998-B pool to experience approximately
12.5% in cumulative net losses.  Annual excess spread plus a dedicated reserve
account provide adequate liquidity and credit coverage for the standalone
double-'B' rating on the class B notes.  Subordination and the class A reserve
account along with additional excess spread provide Financial Security
Assurance with a multiple of expected losses that is consistent with an
investment grade rating.
    This is Tranex's sixth private asset-backed transaction, all of which have
been insured by Financial Security Assurance and rated by Standard & Poor's.
It also marks the fifth Tranex transaction in which Standard & Poor's has
rated the class B securities, Standard & Poor's said. -- CreditWire