Brahms Funding Corp. Remains on Rating Watch Evolving by Fitch.

Business Editors

NEW YORK--(BUSINESS WIRE)--March 11, 2003

Brahms Funding Corp. (Brahms) secured liquidity notes' (SLNs) 'F1' rating remains on Rating Watch Evolving following Fitch's downgrade of Dresdner Bank AG's (Dresdner) short-term rating to 'F2' from 'F1' on February 14, 2003. Fitch is currently in discussions with Dresdner, as administrative agent for Brahms, to modify the program's structural support. According to its program documentation, Brahms is permitted a 30-day grace period following the downgrade of a market value swap counterparty to take action to at least maintain the 'F1' rating of Brahms. The grace period is scheduled to expire on March 14, 2003, at which time Fitch has granted Brahms a 30-day extension of the original grace period to execute the plan that they've identified to reduce exposure to Dresdner in accordance with Fitch's criteria. During this 30-day extension, which will expire on April 14, 2003, Fitch will continue to monitor Brahms and its implementation of it structural revisions. Should any other events reasonably warrant, Fitch may take rating action prior to the expiry of the extended grace period.

Rating Watch Evolving indicates that Brahms' 'F1' rating may be either upgraded, downgraded or affirmed, as a result of possible remedial actions being explored by Dresdner. Brahms, sponsored by Dresdner, is a bankruptcy-remote Delaware corporation established to issue up to $8.0 billion of SLNs and use the proceeds to purchase financial assets structured with transaction-specific market value or total return swaps provided by counterparties rated at least 'F1'. Dresdner serves as a swap provider for certain assets in Brahms asset portfolio, thus linking the rating of the SLNs to that of Dresdner. Fitch's rating action is not a reflection of the performance of Brahms' asset portfolio but simply reflects its link to the rating of Dresdner.