S&P Rates Chase Manhattan Auto Owner Trust 1998-A

Business Wire, Feb 18, 1998

NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 2/18/98 -- Standard & Poor's assigned its ratings to Chase Manhattan Auto Owner Trust 1998-A's asset backed notes classes A-1 through A-4 and asset backed certificates (see list below).

The ratings are based primarily on:

-- A 3.0% subordination for the notes provided by the

certificates;

-- A 3.0% cash reserve account supporting both the notes and the

certificates;

-- Approximately 2.35% annual excess spread;

-- Strong historical loss experience of Chase Auto Finance's (CAF)

portfolio; and

-- A sound legal structure.

The reserve fund builds from 1.50% of the original pool balance to 3.0% of the current balance and will amortize to a floor of 0.75% of the original pool balance. There are performance based triggers, which would result in increasing the reserve account requirement to 6.0% of the current balance from 3.0%.

The class A-1 notes have a legal final maturity of 13 months and benefit from principal collections and excess spread until retired. Standard & Poor's utilized conservative cash flow assumptions to test cash flow coverage of timely interest and repayment of principal by the legal final maturity. These assumptions included an absolute prepayment speed (ABS) of 0.50%, zero losses, and 40% rolling delinquencies.

Chase Manhattan Bank USA N.A., purchases motor vehicle installment sales contracts through CAF. As of Dec. 31, 1997 CAF's indirect auto loan portfolio outstanding was $11.1 billion. Portfolio performance continues to be excellent. As of Dec. 31, 1997, delinquencies including repossessed inventory were 2.23% compared to 2.02% as of Dec. 31, 1996. Although delinquencies have increased, CAF's portfolio compares favorably to its peer group. Annualized net losses for the year ending Dec. 31, 1997 were 0.44%. Annualized net losses were 0.24% in 1996, 0.12% in 1995 and 0.12% in 1994. The increased losses can be attributed to a slower growing portfolio resulting in an increased portion of the portfolio being subject to its peak loss curve.

The 1998-A receivables pool is comprised of automobile installment sales contracts to prime borrowers. There is a 9% increase in new automobiles (54% total) from the 1997-B securitization, the last term transaction. There has been a 14.9% increase in Texas paper in this securitization compared to the 1997-B term deal due to Chase's assumption of an affiliate of relationships with a large number of Dealers in Texas at year end. This increased concentration has been factored into Standard & Poor's expected losses for Chase. The top three state concentrations are in Texas (28.3%), California (12.5%), and New York (8.00%). Other pool characteristics are very similar to previous securitizations. The weighted average seasoning on this pool is 1.11 months. The average contract balance is $16,622 and the weighted average contract rate of the receivables is 9.12%.

The receivables were originated by CAF and were then purchased by Chase Manhattan Bank N.A. The receivables were then subsequently sold to Chase Manhattan Auto Owner Trust 1998-A. The receivables are serviced by Chase USA (Delaware). Series 1998-A is Chase's 10th term securitization of automobile loans, Standard & Poor's said. --CreditWire

RATINGS ASSIGNED

Rating

$238 million class A-1 5.549% asset backed notes A-1+ $204 million class A-2 5.679% asset backed notes AAA $294 million class A-3 5.70% asset backed notes AAA $246 million class A-4 5.80% asset backed notes AAA $30.62 million 6.00% asset backed certificates A+

CONTACT: Gail Fleischman, New York (1) 212-208-1827

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