Fitch Affirms KPAC Series 1993-M1 Multifamily P-T Certificates.

Business Editors

NEW YORK--(BUSINESS WIRE)--Nov. 19, 2001

Kidder, Peabody Acceptance Corp. I (KPAC) multifamily mortgage pass-through certificates, series 1993-M1, $6.7 million class A-2I interest only certificates are affirmed at `AAA' by Fitch. Since last year's review, the ratings on class D and class A-1I have been withdrawn as the certificates have been paid in full. The $6.7 million class E certificates are not rated. The affirmation follows Fitch's annual review of the transaction, which closed in May 1993.

As of the October 2001 distribution date, the pool's certificate balance has decreased by 97%, to $6.7 million from $197.6 million at closing. Of the original 59 loans, one remains which is secured by a 22-building, 149-unit garden style apartment complex in Lakewood, Calif. The property is in average condition with no deferred maintenance and was fully occupied at June 30, 2000. Based on year-end 2000 net operating income less replacement reserves, the property's debt service coverage ratio (DSCR) has increased to 1.46 times (x) from 1.34x at origination.

To date, the certificates have realized losses totaling approximately $10.6 million. The losses largely result from five assets that were liquidated prior to September 1997. The liquidated loans experienced a weighted average loss of 55%.

Fitch will continue to monitor this transaction, as surveillance is ongoing.