Fitch Ratings Affirms ARCap 2004-1 Resecuritization Trust.

NEW YORK -- Fitch Ratings affirms all classes of notes issued by ARCap 2004-1 Resecuritization Trust (ARCap 2004-1). These affirmations are the result of Fitch's review process and are effective immediately:

-- $57,100,000 class A notes at 'AAA';

-- $30,600,000 class B notes at 'AA';

-- $26,500,000 class C notes at 'A';

-- $8,500,000 class D notes at 'A-';

-- $30,700,000 class E notes at 'BBB+';

-- $13,600,000 class F notes at 'BBB';

-- $36,000,000 class G notes at 'BBB';

-- $13,000,000 class H notes at 'BBB-';

-- $31,500,000 class J notes at 'BB';

-- $20,500,000 class K notes at 'B'.

ARCap 2004-1 is a collateralized debt obligation (CDO), which closed on April 19, 2004, and is supported by a static portfolio of commercial mortgage-backed securities. ARCap REIT, Inc. selected the collateral and is currently rated 'CAM2' by Fitch.

These rating affirmations are a result of stable collateral performance. Since the close of the transaction, the weighted average credit quality of the collateral has remained within the 'BB-/B+' rating category. According to the Aug. 18, 2005 trustee report, the overcollateralization test for classes A through H has remained unchanged since the May 18, 2004 trustee report at 157.8%, above its minimum threshold of 120%. The interest coverage test for classes A through H has increased marginally to 153.4% from 149.7%, maintaining a cushion above its minimum threshold of 115%.

The rating of the class A and B notes addresses the likelihood that investors will receive full and timely payments of interest and ultimate repayment of principal by the stated maturity date. The ratings of the class C, D, E, F, G, H, J, and K notes address the likelihood that investors will receive ultimate payment of scheduled and compensated interest and ultimate repayment of principal by the stated maturity date.

Fitch will continue to monitor and review this transaction for future rating adjustments. Additional deal information and historical data are available on the Fitch Ratings web site at www.fitchratings.com.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.