Fitch Affirms LB 1995-C2 Commercial Mortgage Multiclass P-T Certs.

Business Editors

NEW YORK--(BUSINESS WIRE)--April 15, 2004

LB Commercial Conduit Mortgage Trust's, multiclass pass-through certificates, series 1995-C2, are affirmed as follows:

-- Interest-only class IO at 'AAA';

-- $10.6 million class C at 'AAA';

-- $13.0 million class D at 'AAA';

-- $24.7 million class E at 'A';

-- $9.1 million class F at 'B+'.

Fitch does not rate the $9.1 million class G certificates.

The rating affirmations reflect the consistent loan performance and scheduled amortization of the pool's collateral balances. As of the March 2004 distribution date, the pool's aggregate principal balance has been reduced by 74% to $66.4 million from $259.9 million at issuance. The trust has no realized losses to date.

The pool has become more concentrated by loan size and property type, with the top five loans representing 49% of the pool and hotels and self-storage representing (75%). Three loans (26%) are currently in special servicing. The two largest specially serviced loans, (21%) are secured by full-service hotels located in Fort Worth, TX and are cross-collateralized and cross-defaulted. The performance of both properties has declined significantly from issuance due to increased competition and the general downturn in the economy. The properties are currently real-estate owned (REO) and are expected to be marketed for sale in the next few months. The other specially serviced loan (5%) is secured by an anchored retail property in Millville, NJ and is in the process of foreclosure. The special servicer continues to market the vacant space. Losses are expected on all three loans.

Various stress scenarios were applied to account for potentially problematic loans as well as shifts in loan and property type concentrations. Even under these stress scenarios subordination levels were sufficient to affirm the ratings.