Fitch Affs Check Point Charlie's `F1+' ABCP & `AA' Sub A-B Nts.

Business Editors

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

Following Fitch's downgrade of Bankgesellschaft Berlin AG (BGB) to `A/F1' from `A+/F1+' on Dec. 18, 2001, Fitch affirms its `F1+' rating assigned to BGB's Check Point Charlie Inc. (CP Charlie) $2.65 billion asset-backed commercial (ABCP) paper program. Additionally, Fitch affirms its `AA' rating assigned to Portfolio Purchasing Company (PPC) 1, PPC 2, PPC 3 and PPC 4's $25,000,000 subordinated asset-backed floating-rate notes due November 2009, June 2013, June 2013 and December 2016, respectively.

Fitch's affirmation of CP Charlie's ABCP and subordinated asset-backed notes is based on certain remedial steps taken by BGB to preserve the current ratings, in accordance with the terms of its program documents, by cash collateralizing the program-wide support facility currently sized in an amount equal to 2.0% of the maximum purchase limit (currently $55 million) through its `AAA/F1+' subsidiary, Landesbank Berlin (LBB). On Dec. 20, 2001, BGB will make a deposit in an amount of $55 million into a cash deposit loan account with LBB from which PPC Holdings Limited, the special purpose entity through which BGB's program-wide support facility is channeled to CP Charlie, can withdraw funds on behalf of any PPC under the facility.

CP Charlie is a special purpose, bankruptcy-remote Delaware limited liability company, whose primary purpose is the issuance of up to $2.65 billion of 4(2) commercial paper, with maturities of up to 180 days. The proceeds of the issuance are used to make loans to each PPC, which in turn invests the proceeds in highly rated asset-backed securities and other financial assets.

PPC Administrative Services Limited, as administrator for CP Charlie, ensures that the purchased portfolio of securities meets the program's eligibility criteria. All purchased securities must be rated `AA-' or higher and 67% the portfolio must be rated `AAA'. Additionally, the purchased portfolio is further limited by issuer, asset class and country concentration limits. In the event any purchased security has its rating reduced below `AA-', it must be sold within 30 days.

Three layers of credit enhancement are available to protect commercial paper investors. The first layer of credit enhancement includes any security specific enhancement, which has been sized according to the particular security's credit rating. This security specific enhancement may take the form of subordinated interests, monoline insurance guarantees, cash collateral accounts or excess spread, among other types. The Subordinated Asset-Backed Notes provide the second layer of credit enhancement for each PPC. The final layer is a fungible program-wide support facility sized in the amount equal to 2% of the program limit, which will be cash collateralized on Dec. 20, 2001.

For more information on Bankgesellschaft Berlin, please refer to the press release dated Dec. 18, 2001, and available on Fitch's Web site at www.fitchratings.com.