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DUFF & PHELPS RATES FELCO LEASE FUNDING CORP. III SERIES 1993-A AUTOMOBILE LEASE RECEIVABLE BACKED NOTES

 CHICAGO, June 8 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned ratings of "AA" (Double A) to the $45,650,000 senior notes and "BBB" (Triple B) to the $9,350,000 subordinate notes issued by FELCO Lease Funding Corp. III. The 1993-A Series notes, due in 1998, are backed by vehicle lease receivables and expected residual amounts from a pool of automobile, van, and light truck leases originated by Franklin Equity Leasing Co. (FELCO).
 The total scheduled principal amount of lease receivables and residuals is approximately $63 million. The scheduled lease cash flows have been discounted at a rate of 5.8572 percent (the weighted average note rate plus 0.50 percent for servicing) to equal $55 million initial note principal. Interest payments at the respective note rates are made to investors on the 20th of each month beginning in July 1993. Principal payments and prepayments are passed through to investors on a monthly basis.
 Payments to senior investors are supported by total credit enhancement equal to 26 percent (growing to 27 percent) of the initial note amount. The credit enhancement is in the form of the subordinate notes, equal to 17 percent, plus a growing cash reserve with an initial deposit equal to 9 percent. The initial deposit to the reserve is $4,950,000. The reserve account will grow to 10 percent in approximately 10 months' time. The credit enhancement is available to pay delinquent and defaulted amounts on the leases, as well as residual obligations not paid in full. The cash reserve has a floor of $1,100,000.
 The rating on the notes is based on an analysis of the historical loss, delinquency, and residual experience of FELCO's receivables, a stress analysis of the projected cash flows, the origination and servicing capability of FELCO, and the legal structure of the issue. Each month, payments of interest and principal are paid pro rata to the senior and subordinate investors. However, trigger events are built into the structure which cause all principal payments to be made to the senior investors in the event that the performance of the receivables pool deteriorates beyond specific levels.
 -0- 6/8/93
 /CONTACT: Laura M. Ladewski of Duff & Phelps, 312-368-3186/


CO: FELCO Lease Funding Corp. III ST: IN: FIN SU: RTG

GK -- NY060 -- 6624 06/08/93 14:24 EDT
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Date:Jun 8, 1993
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