CDC's 1999-FL1 P-T Ctfs Classes C, D, E & F Upgraded By Fitch Ratings.

Business Editors

CHICAGO--(BUSINESS WIRE)--Sept. 3, 2002

CDC Securitization Corporation's multi-class pass-through certificates, series 1999-FL1 have been upgraded by Fitch Ratings as follows: $36.5 million class C to 'AAA' from 'AA', $43.7 million class D to 'AAA' from 'A-', $21.9 million class E to 'AA' from 'BBB-' and $47 million class F to 'BBB' from 'BB'. In addition, Fitch affirms the interest only classes X-1 and X-2 at 'AAA'. The class A and class B bonds have been paid in full. Fitch does not rate classes G and G-PO.

The upgrades are attributable to significant increases in subordination levels due to loan payoffs. As of the August 2002 distribution date, the pool's aggregate collateral balance has been reduced by 63.8%, to $197.7 million from $546.3 million at issuance. Four loans have been paid in full since Fitch's 2001 annual review. There are currently only four loans in the pool, which has resulted in higher geographic, property type and loan size concentrations in the pool. Remaining in the pool are two retail properties (45.6%), a full-service hotel (40.5%), and one office property (13.9%). Each of the loans is scheduled to mature in December 2002.

The pool has performed well over the term with no delinquencies or loans in special servicing. The loans have strong structural features including hard lock-boxes, interest rate caps, tax and insurance escrows and reserves for capital expenditures.

ORIX, the master servicer, collected year-end (YE) 2001 operating statements for all four loans. The YE weighted average debt service coverage ratio (DSCR) for comparable properties is 2.32 times (x), up from 1.48x for year end 2000. However, this increase in DSCRs is primarily attributed to a lower average LIBOR rate in 2001. The pool's net cash flow (NCF) actually decreased by approximately 13% for YE 2001 versus YE 2000, although it is still 5% greater than at issuance. The decrease in NCF for 2001 is mainly due to lower revenues and rising operating costs for the retail and office properties and generally weak economic conditions for the hotel property in the transaction.

The largest loan in the pool (40.5%) is secured by a full-service hotel property, the Hotel Lexington, located at 48th Street and Lexington Avenue in Manhattan. Although the property's YE 2001 NCF has decreased since YE 2000, it is up 10.5% from issuance.

Fitch is closely monitoring the performance of the smallest loan in the pool (13.9%), Shephard Office Mall, located in Oklahoma City, OK. This property was originally a regional mall, which was converted in 1994 to small office and calling center space. The property is currently 80% occupied; however, approximately 30% of its space rolls over in 2002 and 2003. The borrower exercised its sole extension option in December of 2001 and the final maturity is now December 2002. While Fitch is concerned with the future performance of this loan, there is sufficient credit enhancement below the rated classes to absorb any potential losses that could result.

Although the pool has become more concentrated and the cash flows have decreased since YE 2000, the current ratings are reflective of these factors and Fitch will continue to monitor this transaction closely.