Fitch: U.S. CMBS Servicers Subject to New, Rigorous Benchmarks.

Business Editors

CHICAGO--(BUSINESS WIRE)--Sept. 22, 2003

Fitch Ratings--September 22, 2003: As part of its servicer review process, Fitch Ratings continues to look at three distinct but equally important aspects regarding property level operating statements -- collection, analysis, and reporting. The recently released Fitch commercial mortgage-backed securities (CMBS) servicer report lists collection and reporting results for U.S. CMBS servicers required to collect and report 2002 annual statements as master servicer or primary servicer.

"Operating statement analysis is an important facet of Fitch's post issuance surveillance of CMBS transactions," said Richard Carlson, Director, Fitch Ratings. "For 2003, Fitch Ratings set new, rigorous operating statement benchmarks for both primary and master servicers."

The primary servicer weighted average collection rate for 2002 year-end statements was 93.2% as of May 31, 2003. Although the collection rate does not quite meet the new Fitch benchmark of 95%, 10 of the 19 servicers surveyed met or exceeded 95%. Master servicers as a group did not perform as well as primary servicers in 2003, collecting a weighted average 77.8% of required 2002 year end statements by May 31, 2003, falling well below their new 90% benchmark.

The weighted average reporting rate for primary servicers was 94.7% as of July 31, 2003, nearly meeting the new 95% benchmark for the group. The master servicer weighted average reporting rate was 92.1%, exceeding the new Fitch benchmark of 90%.

More details on individual servicers and a copy of the full report 'CMBS Servicers Strive to Meet New, Rigorous Operating Statement Benchmarks' can be found on the Fitch Ratings web site at 'www.fitchratings.com' by linking to the 'CMBS' sector and clicking on 'Special Reports'.