Correction: Fitch Lowers ASC 1995-MD IV Class B-2, B-2H & A-CS3; Upgrades A-2.

Business Editors

NEW YORK--(BUSINESS WIRE)--July 16, 2003

(This is a revised version of a press release issued yesterday, containing amended information on classes B-2, B-2H and A-CS3, which are being lowered to 'D', not 'C'.)

Asset Securitization Corp.'s (ASC) commercial mortgage pass-through certificates, series 1995-MD IV classes B-2, B-2H and A-CS3 are downgraded by Fitch Ratings as follows:

-- $32.4 million class B-2 to 'D' from 'CCC';

-- $836 class B-2H to 'D' from 'CCC';

-- Interest-only class A-CS3 to 'D' from 'CCC'.

In addition, Fitch upgrades $67.7 million class A-2 to 'AAA' from 'AA+'.

The following certificates are affirmed by Fitch as follows:

-- $272.7 million class A-1 'AAA';

-- Interest-only class A-CS2 'AAA';

-- $53.2 million class A-3 'A+';

-- $58 million class A-4 'BBB+';

-- $29 million class A-5 'BBB';

-- $67.7 million class B-1 'B'.

The downgrades are a result of the discounted sale of the Hardage loan, which has resulted in losses to the Trust as well as the recent bankruptcy filing of the borrower of the Motels of America loan, combined with the loan's continued poor performance. Per the July distribution report, the Hardage loan sale has resulted in total losses in the amount of $6.4 million to the B-2 and B-2H classes. The upgrade is primarily due to paydown, defeasance within the pool and the continued strong performance of the Hallwood and Crescent loans.

As of the July 2003 distribution date, the pool consisted of five loans, including the G&L loan (4%) which has been fully defeased, compared to nine loans at issuance. The certificate balance had been reduced by approximately 40%, to $580.7 million from $967.2 million at closing. One loan, Motels of America, remains in special servicing.

As part of its review, Fitch analyzed the performance of each loan and the underlying collateral. Fitch compared each loan's debt service coverage ratio (DSCR) at the year ended (YE) December 2002 to the DSCR at last review (trailing twelve month-ended June 2002) and the DSCR at issuance. DSCRs are based on Fitch adjusted net cash flow (NCF) and a stressed debt service based on the current loan balance and a Fitch hypothetical mortgage constant.

The Motels of America loan (22%) is secured by 93 limited-service hotels with 7,206 rooms located in 29 states. The loan continues to show declining cash flow since issuance. The loan which continues to be of concern to Fitch, has been in special servicing since January 2003 due to the borrower leasing out a majority of the properties without lender consent. In addition, the borrower filed Ch. 11 bankruptcy on July 10, 2003. According to the bankruptcy filing, the properties have a recent appraisal value of $193 million. The YE 2002 weighted average DSCR, using a 11.19% constant, was 1.17 times (x) down from 1.27x for the trailing twelve months ended (TTM) June 2002 and 1.52x at issuance. The YE 2002 occupancy was 68.9%, down from 69.7% for TTM June 2002 and 70% at issuance. The YE 2002 revenue per available room (RevPAR) was $34.78 compared to $33.74 TTM June 2002, but above $26.77 at issuance. Of the properties inspected in 2002 most were found to be in good condition with deferred maintenance noted at 32 properties.

The Columbia Sussex loan (19%) consists of ten full-service hotels totaling 2,790 rooms, located in eight states. Despite a 20% decline in NCF since issuance, the YE 2002 DSCR based on a 10.48% constant, remains flat at 1.68x compared to 1.68x TTM June 2002 and 1.66x at issuance due to amortization on the loan. The decline in performance is a reflection of the current conditions of the hotel industry, which has affected occupancy rates at the properties. YE 2002 occupancy remained stable at 53% compared to 52% TTM June 2002, but down from 64% at issuance. YE 2002 RevPAR remained stable at $50.33 compared to $50.49 TTM June 2002 and $49.59 at issuance. All properties were inspected in 2002 and received good grades with no deferred maintenance noted.

Of the remaining loans in the transaction, the Crescent (41%) and Hallwood (14%) portfolios continue to show strong performance. Although both loans have shown slight declines in YE 2002 occupancy due to vacancies or lease rollover, NCF is well above that at issuance. Both loans have an investment grade credit assessment by Fitch. The YE 2002 DSCR for the Crescent portfolio, using a constant of 9.23%, was 2.18x, up from 1.42x at issuance. YE 2002 occupancy slightly declined to 93% from 95% at last year's review. The YE 2002 DSCR for the Hallwood portfolio, using a constant of 9.82%, was 2.24x, up from 1.40x at issuance. YE 2002 occupancy slightly declined to 90% from 91% at last year's review.

Fitch will closely monitor this transaction in light of the recent bankruptcy filing of the Motels of America loan and the on-going performance of the Columbia Sussex loan.