Fitch Affirms Pegasus Seven Series No. 1 Ltd. Class A Notes.

Business Editors

NEW YORK--(BUSINESS WIRE)--Sept. 2, 2003

Fitch Ratings affirms Pegasus Seven Series No. 1 Limited's class A notes.

The following three classes have been affirmed:

-- $37.25 million class A-1 pay-through notes 'AA';

-- $24.83 class A-2 pay-through notes 'AA';

-- $34.92 million class A-3 pay-through 'AA'.

The rating addresses the likelihood that investors will receive quarterly interest payments through early redemption or the scheduled maturity date of August 2004, as well as the principal balance of the class A-1, A-2 and A-3 notes by the scheduled maturity date of August 2004, the class A-2 maturity date of August 2011, and the class A-3 maturity date of August 2029, respectively.

The rating reflects the structure of the notes, a master swap agreement with the Royal Bank of Scotland (RBS), and the high quality of the issuer's assets which consist of MPF Two Limited redeemable shares, series C and MPF Three Limited class A shares. The rating also reflects the quality of the investment policies, restrictions, and guidelines of MPF Two Limited and MPF Three Limited. With regard to the issuance of the series C redeemable shares, Fitch affirms the 'F1' commercial paper rating of MPF Two Limited.