Fitch Downgrades, Affirms Selected Aircraft Lease Securitizations.

Business Editors

NEW YORK--(BUSINESS WIRE)--May 6, 2002

Fitch Ratings downgrades and affirms selected aircraft lease portfolio securitizations. The rating actions, outlined below, are part of Fitch's ongoing review of aircraft lease portfolio securitizations which is nearly complete. The review was initiated by the events of Sept. 11 and the recession. On Sept. 20, 2001, Fitch placed all aircraft portfolio lease transactions on Rating Watch Negative. Most of those securitizations have subsequently been removed from Rating Watch. Those still on Rating Watch are pending the receipt of additional information and are likely to be resolved in the next month.

As a result of the events of Sept. 11 and the recession, the aircraft industry is experiencing the worst value and lease rate declines in a decade. Over the past seven months Fitch has attempted to gauge the effects of the declines and the resultant aircraft supply/demand imbalance on each transaction. The review process included an analysis of asset liquidity, lease runoff, loan-to-value, coverage ratios, and discussions with issuers, servicers and appraisal firms.

The review helped to reinforce the strengths and weaknesses of the transactions and highlight that some transactions have been underperforming more than others. Those underperforming the most include: Embarcadero Aircraft Securitization Trust, Pegasus Aviation Lease Securitization 2000-1 and Triton Aviation Finance. Those performing more in line with expectations have had little or no rating volatility and include: Aviation Capital Group Trust, Lease Investment Flight Trust and AerCo Limited.

The rating changes are outlined below:

Aviation Capital Group Trust

-- Classes B, C and D, rated 'A', 'BBB' and 'BB', respectively,

have been affirmed and removed from Rating Watch Negative.

AerCo Limited

-- Class D, rated 'BB', has been affirmed and removed from Rating

Watch Negative.

Embarcadero Aircraft Securitization Trust

-- Class A 'AA';

-- Class B 'A';

-- Class C 'BB';

-- Class D 'B'.

Lease Investment Flight Trust

-- Class D, rated 'BB', has been affirmed and removed from Rating

Watch Negative.

Pegasus Aviation Lease Securitization II, Series 2000-1

-- Class A 'AA';

-- Class B 'A';

-- Class C 'BB';

-- Class D 'B'.

Triton Aviation Finance:

-- Class A 'AA';

-- Class B 'A';

-- Class C 'BB';

-- Class D 'B'.

The ratings of the following transactions remain on Rating Watch Negative:

Airplanes Pass Through Trust

-- Class A 'AA';

-- Class B 'A';

-- Class C 'BB';

-- Class D 'B'.

Pegasus Aviation Lease Securitization III, Series 2001-1

-- Class A 'AA';

-- Class B 'A';

-- Class C 'BB';

-- Class D 'B'.

Pegasus Aviation Lease Securitization, Series 1999-1

-- Class A 'AA';

-- Class B 'A';

-- Class C 'BB';

-- Class D 'B'.