S&P Asgns Rtgs to DaimlerChrysler Auto Trust 2000-B
16 May 2000
S&P Asgns Rtgs to DaimlerChrysler Auto Trust 2000-B
NEW YORK--S&P CreditWire--May 15, 2000--Standard & Poor's today assigned its ratings to DaimlerChrysler Auto Trust 2000-B's US$1.5 billion asset-backed notes (see list).The ratings reflect credit enhancement in the form of 4.75% of initial overcollateralization, 3.75% subordinated asset-backed certificates, a 0.25% fully funded reserve account, and approximately 2.0% in excess spread. The ratings are also based on the extensive amount of data obtained from Chrysler Financial Co. LLC, the solid credit quality of the underlying pool of automobile loans, a sound legal structure, and approximately 10% in credit enhancement.
This is Chrysler Financial's second term securitization of the year, which consists of US$1.5 billion in triple-'A' rated securities and almost US$500 million of retained notes and certificates, backed by just over US$2.0 billion in auto loan receivables. All credit enhancement is measured as a percent of initial securities, which is defined as the initial balance of the class A-1 through A-4 notes plus the US$74,354,000 initial principal balance of subordinated asset-backed certificates.
On each payment date, collected funds will be used to pay the servicing fee, monthly interest, and then to pay down note principal to an outstanding balance that is equal to 94.75% of the remaining pool balance. All remaining collected funds will be paid to the certificateholders. The previous transactions would only release the initial overcollateralization amount and then apply all remaining collections to pay note principal. This new payment structure will result in less overcollateralization later in the life of this deal.
The reserve account will be fully funded at 0.25% at closing and the specified reserve account balance will remain at this level as long as the securities remain outstanding. Thus, as the receivables amortize, the reserve account will grow as a percent of assets outstanding. The reserve account will be used to pay shortfalls in interest, pay principal on the notes if a class is not paid in full on its legal final payment date, and to pay down notes if overcollateralization is depleted.
DaimlerChrysler Auto Trust 2000-B, a Delaware business trust, is the issuer of the securities. DaimlerChrysler Retail Receivables LLC, formerly known as Premier Receivables LLC, is an indirect wholly owned subsidiary of Chrysler Financial and is the initial holder of the certificates. Chrysler Financial, a frequent issuer of ABS, completed 34 transactions using the Premier Auto Trust structure. This will be Chrysler Financial's second securitization using the DaimlerChrysler Auto Trust, which was established to allow the trust to purchase auto receivables directly from Chrysler Financial or indirectly from Mercedes-Benz Credit Corp. The 2000-B transaction consists of only receivables originated by Chrysler Financial, Standard & Poor's said. -- CreditWire
RATINGS ASSIGNED DaimlerChrysler Auto Trust 2000-B Issue Rating Class A-2 US$620 mil 7.30% asset-backed notes AAA Class A-3 US$455 mil 7.53% asset-backed notes AAA Class A-4 US$425 mil 7.63% asset-backed notes AAA