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DUFF & PHELPS: PREMIER AUTO TRUST 1993-5 ISSUES WITH 100 PERCENT PRE-FUNDING ACCOUNT

 CHICAGO, Sept. 14 /PRNewswire/ -- Chrysler Financial Corporation (CFC) has utilized a 100 Percent pre-funded trust structure, the first of its kind. Premier Auto Trust 1993-5, to close next week, initially will have no retail installment sale contracts deposited to the trust. At closing, all proceeds from the sale of the $1,050,000,000 of securities will be deposited to a pre-funding account. Then, on a monthly basis, CFC will sell contracts to the trust, receiving as payment funds from the pre-funding account. CFC anticipates selling the first pool of contracts to the trust in September, and completing the sale of approximately $1,050,000,000 of contracts in December.
 At the time of closing, interest income from amounts held in the pre-funding account are expected to be inadequate to meet monthly interest payments due to investors. Therefore, CFC will establish an additional reserve account that is adequately funded to offset interest shortfalls until a sufficient number of contracts are purchased by the trust to generate interest income necessary to pay investors. Based on CFC's historical monthly volume, CFC is anticipated to have sold to the trust by the end of October a sufficient number of contracts earning interest at a weighted average interest rate of no less than 10 Percent to make investor interest payments without a shortfall.
 Duff & Phelps Credit Rating Co. has assigned preliminary ratings of Duff 1+ (One Plus) to the Class A-1 money market asset backed notes, 'AAA' (Triple A) to the Class A-2 asset backed notes, and 'AA-' (Double A Minus) to the asset backed certificates. The ratings reflect the historically high quality and consistent characteristics of contracts originated by CFC and generally stable volume monthly originations. The pool of contracts purchased by Premier Auto Trust 1993-5 is anticipated to be of similar quality and characteristics as contracts purchased by prior trusts.
 -0- 9/14/93
 /CONTACT: Julia S. Landes of Duff & Phelps Credit Rating Co., 312-368-3180/
 (C)


CO: Chrysler Financial Corporation ST: Michigan, Illinois IN: AUT FIN SU: RTG

LD -- NY089 -- 1999 09/14/93 18:34 EDT
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Publication:PR Newswire
Date:Sep 14, 1993
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