CVM Finance Corporation Affirmed By Fitch.

Business Editors

NEW YORK--(BUSINESS WIRE)--June 9, 2000

CVM Finance Corporation's $111.3 million class A 7.19% collateralized notes are affirmed at `AA' by Fitch.

The transaction was originally rated in March 1994. The certificates were privately placed pursuant to Rule 144A under the Securities Act of 1933.

The notes evidence interests in a trust fund, originally consisting of a $120 million first mortgage lien on Crabtree Valley Mall. At issuance a letter of credit (LOC) was provided by Morgan Guaranty Trust Co. in the amount of $55 million. The LOC was viewed as additional collateral and not credit enhancement and was released in stages from 1996 to Feb. 1999. The gradual release was based on a 1.80 times (x) debt service coverage ratio (DSCR) calculated from audited net operating income from each preceding calendar year.

Crabtree Valley Mall is a two-story, enclosed, 1,334,000 square foot regional mall located in Raleigh, N.C. It was built in 1972, renovated in 1985, expanded in 1995 and anchored by Sears, Hechts, Lord & Taylor and Hudson-Belk. The mall also consists of a convenience center and several outbuildings. The actual collateral consists of 993,100 square feet that includes two anchors, Lord & Taylor and Hudson-Belk.

Crabtree Valley Mall's performance has improved since issuance. The overall sales per square foot have increased since underwriting. Over the last five years, occupancy has averaged 96% and as of April 2000 was 95%. The property's net cash flow (NCF), adjusted for capital expenditures, has increased 37% from underwriting. In addition, the DSCR has increased from 1.02x at underwriting to 1.72x in 1999. The current loan-to-value (LTV) is 54.61%. The LTV was calculated using the outstanding loan balance divided by a capped NCF. In addition to Crabtree's strong performance, the Raleigh/Durham/Chapel Hill triangle area continues to be a solid retail market.

Of concern is a high concentration lease rollover in the year 2002 and new construction in the market. Almost 30% of the collateral space has leases that expire in 2002. This coincides with the probable completion of The Streets of Southport, a new mall owned by Urban Shopping Centers (located in southern Durham County), which has an expected completion date of March 2002. It is anticipated that The Streets of Southport will be in direct competition with Crabtree Valley Mall. Another mall owned by The Jacobs Group is also scheduled to open in Raleigh in 2002. Fitch will continue to monitor these issues as well as the financial performance as surveillance is ongoing.

Fitch is an international rating agency that provides global capital market investors with the highest quality ratings and research. Dual headquartered in New York and London with a major office in Chicago, Fitch rates entities in 75 countries and has some 1,100 employees in more than 40 local offices worldwide. The agency, which is a combination of Fitch IBCA and Duff & Phelps Credit Rating Co., provides ratings for Financial Institutions, Corporations, Structured Finance, Sovereigns and Public Finance Markets worldwide.