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DCR Rates Wheels Inc.'s Commercial Paper 'D-1'

3 September 1999

DCR Rates Wheels Inc.'s Commercial Paper 'D-1'

    CHICAGO, Sept. 3 -- Duff & Phelps Credit Rating Co. (DCR)
has assigned an initial rating of 'D-1' (D-One) to Wheels Inc.'s $775 million
commercial paper program.  Wheels is a provider of auto fleet management
services.  The commercial paper is pari passu with other senior indebtedness
of Wheels.
    The rating reflects Wheels' low-risk profile, solid profitability and
modest use of financial leverage.  Wheels' customer base is predominantly
investment-grade corporations.  Wheels is not exposed to interest rate or
residual risk since all interest costs are directly passed on to customers in
lease cost.  Customers are responsible to make up deficiency on the asset
disposition at the end of the lease term.  Wheels has been able to maintain
and increase its customer base through excellent customer service driven by
its use of information technology.  Wheels has not deviated from its strategy
of having a high-quality portfolio of customers, targeting the Fortune
1000.
    Wheels' policy is to ensure that committed bank facilities aggregate
100 percent of the maximum amount of outstanding commercial paper.
Wheels maintains a $775 million committed and secured credit facility, which
includes domestic and foreign banks and is composed of a $516.67 million
credit line maturing in 364 days or less and $258.33 million maturing in 2004.
Wheels is governed by its Intercreditor Agreement and Collateral and Security
Agreement in which all lenders participate.  The key covenant requires
eligible inventory to aggregate loans to be greater than or equal to 1:1.
Wheels is currently well within their covenants.
    Wheels is currently in the top five in the United States in terms of
units under fleet management services.  Wheels' target market remains the
Fortune 1000, and it currently has more than 180,000 cars under management.
Wheels continues to increase fee-based income based on services such as fuel
and cost management programs, service cards and billing services.  The company
will continue to emphasize fee-based products to keep minimal capital at risk.