ACE Funding Ser 1999-1 RESIMAC MBS Notes Rated By Fitch IBCA.

NEW YORK--(BUSINESS WIRE)--July 13, 1999--

ACE Funding Series 1999-1 RESIMAC MBS Euro 175 million mortgage-backed, pass-through, floating rate notes, due December 2030 are expected to be rated 'AAA' by Fitch IBCA.

This is the first issue of notes by ACE Funding Limited under its US$1 billion Euro-medium term note (EMTN) program established in March 1999.

The rating expected to be assigned to the notes is based on:

-- Quality and nature of the residential mortgage-backed securities 

(the A$267.5 million RESIMAC MBS 1999-1 class A1 notes expected

to be rated 'AAA' by Fitch IBCA),

-- Cross currency swap provided by Societe Generale (rated

'AA'; RatingAlert negative by Fitch IBCA);

-- Sound legal structure of the EMTN program;

-- Management and administrative capabilities of SG Australia

Limited as operating agent for ACE Funding.

The issuer, ACE Funding, is a special purpose company incorporated in the Australian Capital Territory for the purpose of raising funds by the issuance of, among other instruments, floating rate notes to fund various debt or equity obligations. The EMTN program is multi-currency allowing for the issuance of any currency, subject to compliance with applicable laws and regulatory restrictions. The ACE Funding RESIMAC MBS notes are a discreet series of notes and the assets supporting such notes are segregated from any other assets of the issuer.

The proceeds of the ACE Funding RESIMAC MBS notes will, by way of a subscription in the series investor unit in the series master trust which is then invested in an investor unit in the series sub-trust, be ultimately used to acquire the RESIMAC MBS 1999-1 Trust class A1 notes, the proceeds of which will fund the acquisition of eligible mortgage loans. The sub-trustee will enter into the currency swap to ensure that the net cash flows of the sub-trust will fully match its obligations to make payments to the Master Trust that are sufficient to allow the issuer to satisfy its obligations under the ACE Funding RESIMAC MBS notes.

The ACE Funding RESIMAC MBS notes issued by ACE Funding Limited mirror the credit quality features of the underlying collateral, the RESIMAC MBS 1999-1 Trust class A1 notes, to be issued by Permanent Trustee Australia Limited as trustee for the RESIMAC MBS 1999-1 Trust, with the exception of the currency swap which swaps the cash flows from monthly to quarterly and from Australian dollars to Euro. The RESIMAC MBS 1999-1 Trust class A1 notes which will be issued at the same time as the ACE Funding RESIMAC MBS notes, are ultimately collateralized by first-ranking mortgages on Australian residential properties and other authorised investments.