Fitch Assigns Final Ratings To La Defense III Plc.

Business Editors

LONDON--(BUSINESS WIRE)--March 4, 2004

Fitch Ratings, the international rating agency, has today assigned final ratings to La Defense III Plc's notes due April 2014 as follows:

-- EUR475million Class A1 notes: 'AAA';

-- EUR98m Class B1 notes: 'AA';

-- EUR62m Class C1 notes: 'A'.

This transaction is a securitisation of a commercial mortgage loan to be originated by Credit Suisse First Boston ('CSFB') to refinance a portfolio of eight properties located in La Defense and the Central Business District (CBD) of Paris.

The collateral consists inter alia of the loan for an initial amount of EUR635m (initial loan-to-value of 57.5%) executed but unregistered mortgages (acte d'affectation hypothecaire de premier rang) over all properties and an assignment of all rental income from the properties. These mortgages will be registered if a debt service coverage ratio trigger, among other triggers, is breached. The intermediate issuer, a 'Fonds Commun de Creances' (the French securitisation vehicle), will issue Class A units (parts) and use the proceeds to purchase the loan from CSFB. Simultaneously, the final issuer, La Defense III Plc, will use the proceeds from the issuance of Class A1, B1, and C1 notes to purchase the Class A units.

The eight Class A/B underlying properties total 181,085 sq m lettable space (of which 175,478 sq m were occupied as at 28 February 2004), with 1,718 parking slots, valued at EUR1,104.9m in October 2003 by Knight Frank. Of the lettable surface, 95% is used as office space. Two buildings are located in the 8th arrondissement of Paris, and six buildings are located in La Defense. La Defense is the largest business district in Europe, with a total of 3.2 sq m of lettable office space, where 150,000 people work daily, and which benefits from excellent private and public transport infrastructure.

The lease profile of the properties is characterised by a number of significant tenants, which make up a large proportion of the overall rent roll. Indeed, the three largest tenants represent 63.5% of the rent roll while the five largest tenants account for 85.9% of current rental income. Fitch took into account these sizeable exposures in its credit analysis by ensuring that the credit enhancement levels were sufficient to cover the default of the main tenant (Societe Francaise de Radiotelephone ("SFR"), a French mobile phone operator), which generates 28.3% of the rental income.

The final ratings reflect the credit enhancement provided to each Class by subordination of Classes junior to it, the features of the underlying collateral and the integrity of the legal and financial structure. The final ratings address the timely payment of interest and ultimate repayment of principal by the final legal maturity date of 9 April 2014. Interest on the units will be paid quarterly in arrears commencing on 9 July 2004 and the notes will amortise pro rata in line with the repayment schedule of the loan, which commences on 9 July 2004. The structure benefits from a liquidity facility of EUR50m, or 7.9% of the initial notes balance.

For more details on Fitch's methodology to rate this transaction, a report is available on the agency's website, www.fitchratings.com, or from local Ratings Desks (Tel: [phone] in London or [phone] in Paris).