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DCR Rates Household Automobile Revolving Trust I, Series 1998-1

7 December 1998

DCR Rates Household Automobile Revolving Trust I, Series 1998-1

    NEW YORK, Dec. 4 -- Duff & Phelps Credit Rating Co. (DCR) has
assigned the following ratings to the notes issued by Household Automobile
Revolving Trust I, Series 1998-1:


    Issue                          Amount              Coupon
    Rating

    Class A-1 Notes                  $139,370,000            5.33%
    'D-1+' (D-One-Plus)

    Class A-2 Notes                  $54,000,000              5.514%
    'AAA' (Triple-A)

    Class A-3 Notes                  $143,000,000            Libor+0.45%
    'AAA' (Triple-A)

    Class A-4 Notes                  $80,832,000              Libor+0.50%
    'AAA' (Triple-A)

    Class A-5 Notes                  $100,000,000            5.65%
    'AAA' (Triple-A)

    Class B-1 Notes                  $99,303,000              6.30%
    'AA' (Double-A)

    Class B-2 Notes                  $94,338,000              6.40%
    'A' (Single-A)

    Class C Notes                     $60,823,000              6.50%
    'BBB' (Triple-B)

    Series 1998-1 Certificates        $55,858,763             Privately Placed
    Privately Placed

    DCR's ratings of the Series 1998-1 notes are based on Household's
extensive origination and servicing experience in consumer loans, the sound
legal structure of the transaction, 38.5 percent credit enhancement for the
Class A Notes, 26.5 percent credit enhancement for the Class B-1 Notes,
15.1 percent credit enhancement for the Class B-2 Notes, and 7.75 percent
credit enhancement for the Class C notes.
    The collateral for this transaction consists of $828 million of retail
automobile sales contracts originated by dealers to nonprime consumers.
Nonprime borrowers are those that may be unable to obtain traditional
financing from banks, thrifts, credit unions or captive finance companies due
to past credit problems or limited credit histories.  Although HAFC generally
will not offer financing to vehicles that are more than eight years old, the
receivables in the trust are predominately used vehicles, (approx 80 percent).
    Depending on mileage and general condition, the market value of used
vehicles may vary substantially for different vehicles of similar model year.
Proceeds from repossessed vehicles may be less than anticipated and may affect
losses to the notes.  These two factors, credit history and collateral, are
the two major considerations under HAFC's (as well as other nonprime
originators') underwriting guidelines.  As of the cut-off date, the
receivables pool had a weighted-average coupon (WAC) of 19.77 percent, average
principal balance of $13,061, weighted-average original term of 62 months,
weighted-average remaining term of 56 months, and no loan was more than
30 days delinquent.  Geographically diversified among 40 states, the
receivables pool has its largest concentrations in Texas (16 percent),
California (13 percent) and Florida (10 percent).
    A New Financing Report Summary detailing this transaction is available on
Bloomberg at DCR or by calling the DCR Hotline at 312-368-3198 or by
e-mail at hotline@dcrco.com.