DBRS Confirms and Downgrades Several Classes in Chrysler 2008 Deals

DBRS has confirmed the ratings for Chrysler Financial Auto Securitization Trust 2008-A and has confirmed and downgraded the ratings on various Classes for 2008-B (formerly DaimlerChrysler Auto Trust 2008-A and 2008-B, respectively). DBRS has also removed all ratings from Under Review with Developing Implications. The class details are listed below.

Chrysler Financial Auto Securitization Trust 2008-A
-- Class A-3a confirmed at AAA
-- Class A-3b confirmed at AAA
-- Class A-4 confirmed at AAA
-- Class B confirmed at “A”
-- Class C confirmed at BBB

Chrysler Financial Auto Securitization Trust 2008-B
-- Class A-2a confirmed at AAA
-- Class A-2b confirmed at AAA
-- Class A-3a confirmed at AAA
-- Class A-3b confirmed at AAA
-- Class A-4a confirmed at AAA
-- Class A-4b confirmed at AAA
-- Class B downgraded to BBB from “A”
-- Class C downgraded to BB from BBB

The ratings were placed Under Review with Negative Implications on May 1, 2009 because of the filing of Chrysler LLC for protection under Chapter 11 of the U.S. Bankruptcy Code and deterioration in performance. Chrysler is the parent company of Chrysler Financial Services Americas LLC, the originator and servicer for the transactions listed below. Chrysler LLC emerged from bankruptcy protection in June 2009.

DBRS has taken the following factors into account,, which support the confirmation of the ratings of the 2008-A transaction and the ratings of the Class A in the 2008-B: Chrysler Financial is now a separate entity from the manufacturer; DBRS has recently reviewed Chrysler Financial’s servicing operation and found them to be an acceptable servicer; both transactions benefit from a consistent yield which is provided by a structural discount mechanism in the transactions; credit support underlying the rated notes increases over time as the transactions amortize; the addition of $30 million placed in the reserve account for the 2008-A Trust; in addition to the recent decline in delinquency rates.

The factors supporting a reduction in the ratings of the 2008-B, Class B and C notes include the following: cumulative net losses are higher than originally projected.. In addition, the 2008-B transaction is less seasoned relative to than the 2008-A transaction and has less credit enhancement to cover projected potential future losses.

Note:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodology is Rating U.S. Retail Auto Loan Securitizations, which can be found on our website under Methodologies.

This is a Structured Finance rating.