Fitch Affirms LB Commercial Mortgage Trust, Series 1998-C1.

Business Editors

CHICAGO--(BUSINESS WIRE)--Aug. 22, 2000

LB Commercial Mortgage Trust's commercial pass-through certificates, Series 1998-C1 are affirmed as follows: the $212.4 million Class A-1, the $308 million Class A-2, the $642.3 million Class A-3 and the interest only class at `AAA'; the $86.4 million Class B at `AA'; the $86.4 million Class C at `A'; the $90.7 million Class D at `BBB'; and the $34.6 million Class E at `BBB-`. In addition, the following classes are affirmed: the $51.8 million Class F at `BB+'; the $34.6 million Class G at `BB'; the $17.3 million at `BB-`; the $43.2 million Class J at `B'; the $17.3 million at `B-`; and the $17.2 million Class L at `CCC'. The rating affirmations follow Fitch's annual review of the transaction, which closed in March 1998.

As of the July 2000 distribution date, the transaction's aggregate principal balance has decreased approximately 3% to $1.67 billion. The certificates are currently collateralized by 257 multifamily and commercial mortgage loans. By outstanding balance, the pool consists of 46% retail, 24.8% multifamily, 14.8% office, 6.5% hotel, and 5.6% industrial. The properties are located in 36 states, with concentrations in Florida (9.7%), Texas (9.6%), New York (8.7%), California (8.2%), Maryland (5.9%), and Pennsylvania (5.9%).

The Master Servicer, GMAC Commercial Mortgage, collected approximately 86% of year-end 1999 operating statements. For those loans that reported financials, the weighted-average debt service coverage ratio (DSCR) was 1.47 times (x) in 1999 compared to 1.35x at underwriting. There are two loans in special servicing, one in foreclosure and one 90 days delinquent. In addition to these two loans, Fitch applied a stress scenario to four other loans, approximately 5% of the total pool, whereby these loans were assumed to default at various rates. The resulting subordination levels were sufficient to affirm the current ratings.

Fitch is an international rating agency that provides global capital market investors with the highest quality ratings and research. Dual headquartered in New York and London with a major office in Chicago, Fitch rates entities in 75 countries and has some 1,100 employees in more than 40 local offices worldwide. The agency, which is a combination of Fitch IBCA and Duff & Phelps Credit Rating Co., provides ratings for Financial Institutions, Insurance, Corporates, Structured Finance, Sovereigns and Public Finance Markets worldwide.