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DUFF & PHELPS RATES CARCO AUTO LOAN MASTER TRUST

 CHICAGO, March 1 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of AAA' (Triple-A) to the $250 million floating-rate Series 1993-1 certificates issued by CARCO Auto Loan Master Trust. The certificates pay interest at a rate equal to 0.28 percent above one- month LIBOR. The certificates are backed by receivables generated from a mr? pool of wholesale automobile dealer lines of credit (floorplan accounts) originated and serviced by Chrysler Credit Corporation (CCC). CCC has sold the receivables to U.S. Auto Receivables Company (USARCO) which is a wholly-owned special-purpose corporation of Chrysler Financial Corporation.
 The AAA' rating is based on an analysis of the characteristics and performance history of CCC's entire U.S. wholesale (floorplan) portfolio, a stress analysis of projected cash flows, the legal structure of the transaction, and the origination and servicing capabilities of CCC. The AAA' rating reflects investor payment support in the form of 12 percent subordination of the seller interest, and a 0.55 percent reserve fund. Any draws made on the subordinated amount are reimbursed from recoveries on previously defaulted receivables or from excess cash flows. With this issue, the CARCO Auto Loan Master Trust has seven outstanding public series of certificates (1991-1 through 1991-4, 1992-1 and 1992-2). The current remaining principal amount of these securities is equal to $2.95 billion. The master trust currently has total receivables balances of approximately $3.524 billion. The difference (approximately 16.3 percent) represents the seller's (USARCO's) interest in the master trust. The seller's interest acts to absorb fluctuations of receivables that may occur periodically due to the varying financing requirements and payment behavior of the underlying auto dealers. In addition, a portion of the seller's interest is subordinated to the certificates for each outstanding series.
 Investors receive a certificate rate equal to one-month LIBOR plus a spread of 0.28 percent. However, if at any time the certificate rate is greater than the underlying interest earned on the receivables, then the certificate rate will equal the available interest rate earned on the receivables. There is an interest-only or "revolving period" which is expected to last for 54 months (but may extend up to 59 months at the determination of CCC, the servicer). During the revolving period, daily principal received from the underlying receivables is reinvested in additional receivables. Full repayment of certificate principal to investors is expected to be on Feb. 15, 1998.
 Principal may be repaid earlier if, at any time, an "early amortization" (trigger) event occurs which causes all receivables principal and interest to pass through monthly until the certificates are repaid in full. Specific trigger events include: a) a reduction in required subordination; b) used vehicle receivables exceed 20 percent of the trust; c) the two-month average of monthly dealer payment rates falls below 20 percent; d) bankruptcy by either Chrysler Corporation, CFC, CCC, or USARCO.
 -0- 3/1/93
 /CONTACT: Andrew Leszczynski of Duff & Phelps Credit Rating Co., 312-368-3177/


CO: CARCO Auto Loan Master Trust ST: IN: AUT SU: RTG

TM -- NY101 -- 1607 03/01/93 16:50 EST
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Publication:PR Newswire
Date:Mar 1, 1993
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