---

S&P Rates USAA Auto Loan Grantor Trust 1999-1 AAA,BBB

18 August 1999

S&P Rates USAA Auto Loan Grantor Trust 1999-1 AAA,BBB

    NEW YORK, Aug. 17 -- Standard & Poor's assigned its
triple-'A' rating to USAA Auto Loan Grantor Trust 1999-1's $673.1 million
6.10% class A certificates and its triple-'B' rating to the $26.3 million
6.67% class B certificates.
    The rating to class A reflects credit enhancement in the form of a 3.75%
class B subordination, as well as a reserve account and excess spread, from
which both classes benefit.  Class B principal collections may be used to pay
class A interest.  Additional credit enhancement is available to both classes
through a reserve account with an initial deposit of 0.75% of the initial pool
balance, capping at 1.25% of the current pool balance, with a floor of 0.50%
of the initial pool balance.  Based on delinquency and net loss triggers, the
reserve account will increase to 2.5%, should pool performance deteriorate.
The pool's credit enhancement provides a sufficient amount of loss coverage
for the assigned ratings.
    United Services Automobile Association (USAA) was founded in 1922 and is
headquartered in San Antonio, Texas.  The company started as a reciprocal
reinsurance exchange for armed forces officers, its Members, but has since
broadened its consumer finance services to commercial banking, various
insurance services, credit cards, and brokerage services. USAA Federal Savings
bank, its banking subsidiary, markets its services to its members, their
families, and recently, to enlisted military personnel.  Its auto loan
concentration is highest in Texas (18.9%) and California (9.42%).  As of Dec.
31, 1998, the bank had total assets of $7.18 billion, and total equity of
$674 million.
    This is USAA Federal Savings Bank's fifth grantor trust securitization,
and is identical in structure to the previous securitizations.  USAA Federal
Savings Bank (seller and servicer) sells the assets to USAA Auto Loan Grantor
Trust 1999-1 (issuer).  The grantor trust will issue class A certificates,
which will be sold to investors, and class B certificates, which will be sold
to a subsidiary of USAA.  The composition of the receivables in this pool is
consistent with previous securitizations: the collateral is comprised of new
and used automobiles and light-duty trucks, backed by simple interest
contracts that do not exceed a tenor of 72 months.  The used auto loan content
in this pool, at 40.67%, is higher than the 23.6% level of the previous deals,
but is not deemed to have a significant adverse effect on the pool's loss
levels.
    Net losses fell from 0.19% at year-end 1997 to 0.16% at year-end 1998, but
grew to 0.24% (on an annualized basis) for the six-month period ended June
1999.  Delinquencies exceeding 30 days increased from 0.34% at year-end 1997,
to 0.44% at year-end 1998, and are at 0.36% for the six-month period ended
June 1999.  The increase in delinquencies and net losses is a result of the
auto loan portfolio's growth, which targets its expanded customer base.  Auto
loan portfolio outstandings have grown 23% by year-end 1997, 35% by year-end
1998, and at a 32% annualized rate during the six-month period ending June
1999, Standard & Poor's said. -- CreditWire