Credit enhancement has been lowered from 11.11% to 9.89%, to reflect strong asset performance within CARCO. The overcollateralization percentage will increase to 11.11% should DaimlerChrysler AG's unsecured corporate rating fall below investment grade.
The reserve fund and yield supplement account present in prior CARCO deals have been eliminated because collections are pooled to pay interest and principal on all notes outstanding.
Unlike past CARCO transactions, DCMOT 2002-A does not have an available funds cap. The pooling of collections provides liquidity in the form of available principal amounts to pay interest on the notes; however, reallocation of available principal reduces the overcollateralization amount.
The overconcentration amount increased from the excess of 2% of affiliated dealers, to 4% for the two top national dealers and the excess of 2% of any other affiliated dealers.
Source: Fitch Ratings