Fitch Affirms Legg Mason's IDR at 'A-'; Outlook Positive.

CHICAGO -- Fitch Ratings has affirmed Legg Mason's (LM) issuer default rating (IDR) at 'A-'. The Rating Outlook is Positive. A complete list of ratings is shown below.

Legg Mason's ratings are based on its sizable assets under management balance and historically strong record of AUM growth.

Management has begun the job of integrating CAM's and Permal's systems and combining their cultures into the existing organization. The process will not be completed until later during fiscal year (FY) 2007 (ends March 31, 2007). If management is successful in integrating CAM and Permal while maintaining positive client asset flows, strong earnings, and solid debt service ability, Fitch will likely consider upgrading LM's long-term IDR.

The following ratings for Legg Mason, Inc. are affirmed with a Positive Rating Outlook:

Legg Mason Inc

-- Long-term issuer default rating 'A-';

-- Long-term senior 'A-';

-- Convertible debt 'A-';

-- Rating Outlook Positive

Fitch's rating definitions are available on the agency's public web site, www.fitchratings.com. Published ratings, criteria and methodologies and relevant policies and procedures are also available from this site, at all times. This document will remain on the public site for seven days. The ratings above have been initiated by Fitch as a service to investors. The issuer did not participate in the rating process other than through the medium of its public disclosure.