S&P Rts Chase Manhattan Auto Owner Trust 97B Certs,Nts

Business Wire, June 20, 1997

NEW YORK--(BUSINESS WIRE)--S&P's CreditWire 6/20/97--Standard & Poor's today has assigned its ratings to Chase Manhattan Auto Owner Trust 1997B's $953.15 million asset-backed notes and certificates as follows: -0-

-- $200 million class A-1 5.744% money market asset-backed notes at `A-1'-plus,

-- $294 million class A-2 6.100% asset-backed notes at triple-`A',

-- $227 million class A-3 6.350% asset-backed notes at triple-`A',

-- $133 million class A-4 6.500% asset-backed notes at triple-`A',

-- $70 million class A-5 6.600% asset-backed notes at triple-`A', and

-- $29.15 million 6.750% asset-backed certificates at single-`A'-plus. -0-

The ratings are based on credit support provided by 3.0% subordination supporting the notes, a 3.0% cash reserve account supporting both the notes and the certificates, an annual excess spread of about 2.25%, strong historical loss experience of Chase Auto Finance's (CAF) portfolio, and a sound legal structure. The initial reserve amount of 1.50% of the initial pool of receivables will amortize to a floor of 0.75% of the original pool balance. There are performance-based triggers that would result in the reserve account requirement increasing to 6.0% of the current balance from 3.0%.

Chase Manhattan Bank USA N.A. purchases motor vehicle installment sales contracts through CAF. As of March 31, 1997, CAF's indirect auto loan portfolio had $10.307 billion outstanding. Portfolio performance has been excellent. As of March 31, 1997, delinquencies (including repossessed inventory) were 1.71% compared to 1.27% in the quarter ended March 31, 1996. Automobile lenders' delinquencies are generally at their highest point in the fourth quarter of a calendar year. Although delinquencies have risen the last two years, CAF's portfolio compares favorably to its peer group. Annualized net losses for the quarter ended March 31, 1997 were 0.42%, compared to 0.24% for the quarter ended March 31, 1996. Annualized net losses were 0.24% in 1996, 0.12% in 1995, and 0.12% in 1994. The increased losses can be attributed to slowing growth in the portfolio resulting in an increased portion of the portfolio being subject to its peak loss curve.

The 1997B receivables pool is composed of automobile installment sales contracts to prime borrowers. The pool is very similar to previous securitizations. The weighted average seasoning on this pool is 1.54 months. The top three state concentration are Texas (13.4%), New York (11.5%), and California (9.8%). The average contract balance is $15,918 and the weighted average annual percentage rate of the receivables is 9.56%.

The receivables were originated by Chase Automotive Finance and then purchased by Chase Manhattan Bank N.A. The receivables were then subsequently sold to Chase Manhattan Auto Owner Trust 1997-B. The receivables are serviced by Chase USA (Delaware).

Series 1997B is Chase Manhattan's ninth securitization of automobile loans. Chase Manhattan first utilized an owner trust structure for its 1996C transaction, Standard & Poor's said. -- CreditWire

CONTACT: Brian Mulqueen, New York (1) 212-208-8021