Correction: Fitch Takes Action on Approximately $2.05B of Metris Master Trust Notes.

NEW YORK -- (This is an amended version of a press release issued earlier today. The headline incorrectly states that Fitch has upgraded over $2 billion in credit card ABS, when in fact Fitch has both upgraded and affirmed the issues in question.)

Fitch Ratings affirms ratings for the class A securities and upgrades class B and class C securities of the below listed series issued from Metris Master Trust. The rating actions, which affect approximately $2.05 billion of credit card backed securities, reflects stabilizing trust credit quality metrics and Metris Companies Inc.'s (MCI, or Metris) progress in addressing near-term liquidity risks, as well as accounting, regulatory, and servicing concerns. These actions do not affect any series issued that are insured by MBIA, Inc.

Since Fitch's last rating action, key trust performance metrics have continued to show improvements. While still at elevated levels, trust vintage default rates appear to have declined from their peaks, and delinquency trends have posted improvements in recent months. Trust credit quality has continued to improve with trust reported losses averaging 18.48% year-to-date in 2004, compared with 20.62% in 2003 and 15.82% in 2002. Delinquencies of 60 plus days for the most recent reporting period were at 9.74%, compared with 11.23% in the December 2003 reporting period. Driving this improvement has been the company's revamped credit line management initiatives, heightened collections efforts, and new underwriting guidelines. Fitch expects that further improvement in trust credit quality metrics will remain challenged by the denominator effect caused by portfolio attrition and limited new account growth. Residual effects of older, weaker, performing vintages will continue to represent a significant proportion of the trust receivable base. Positively, trust-reported gross yield has been relatively stable and in-line with historical performance, averaging 26.79% over the past 12 months, while the monthly payment rate has shown improvement with the past 12-month average of 7.43%.

The master trust has experienced improving excess spread levels, which have increased from historical lows in 2003. Driving this improvement has been the relatively stable portfolio yield, historically low short-term interest rates, and improving credit metrics. Excess spread levels have increased steadily since the beginning of 2004, with the October 2004 period reporting one-month and three-month average excess spread at 5.22% and 5.56%, respectively. The improvement in excess spread has allowed for spread account deposit to be released back to the company. After reviewing the stress scenarios, Fitch believes available credit enhancement is commensurate with newly assigned ratings. As such, ratings on outstanding trust series are adjusted as indicated below.

While Fitch recognizes relative improvements in terms of performance metrics as well as liquidity, Metris will remain challenged as a niche credit card issuer in a competitive market. Fitch also remains concerned with the company's ongoing Securities and Exchange Commission (SEC) investigation of the company's SEC fillings in 2001 and Internal Revenue Service (IRS) review of the company's tax strategy. Fitch will continue to monitor management's assessment of these items.

On Oct. 8, 2004, Fitch upgraded the senior debt rating of Metris to 'B-' from 'CCC'. Ratings of Direct Merchants Credit Card Bank, N.A. (DMCCB) are affirmed at a long-term 'B' and short-term 'B'. The Rating Outlook for Metris and DMCCB is Stable. This action affected approximately $150 million of outstanding unsecured debt. The ratings upgrade primarily reflects the company's improving operating performance coupled with strengthened liquidity, which Fitch believes will be sustainable over the near to intermediate term.

Series 2001-2

-- $559.39 million class A floating-rate asset-backed securities affirmed at 'A-';

-- $99.45 million class B floating-rate asset-backed securities to 'BBB' from 'BB+';

-- $91.16 million class C floating-rate secured notes 'BB+' from 'B'.

Series 2000-3

-- $372.9 million class A floating-rate asset-backed securities affirmed at 'A-';

-- $66.29 million class B floating-rate asset-backed securities to 'BBB' from 'BB+'

-- $60.77 million class C floating-rate secured notes to 'BB+' from 'B'.

Series 2000-1

-- $447.52 million class A floating-rate asset-backed securities affirmed at 'A-';

-- $67.96 million class B floating-rate asset-backed securities to 'BBB' from 'BB+';

-- $84.53 million class C floating-rate secured notes to 'BB+' from 'B'.