Fitch Ratings Affirms Diversified REIT Trust 1999-1 Ltd./Corp.

NEW YORK -- Fitch Ratings affirms all classes of notes issued by Diversified REIT Trust 1999-1 Ltd./Corp. (DREIT 1999-1). The following rating actions are effective immediately:

--$104,075,367 class A-1 at 'AAA';

--$210,131,833 class A-2 at 'AAA';

--$31,125,600 class B at 'AAA';

--$31,125,600 class C at 'AAA';

--$41,500,800 class D at 'A+';

--$23,344,200 class E at 'BBB-';

--$5,187,600 class F at 'BB';

--$7,781,400 class G at 'BB-';

--$5,187,600 class H at 'B';

--Class X (interest only) at 'AAA'.

DREIT 1999-1 is a collateralized debt obligation (CDO) which closed May 26, 1999. DREIT 1999-1 is composed of a static pool of senior unsecured real estate investment trust (REIT) securities.

Fitch has reviewed the credit quality of the individual assets comprising the portfolio. The rating affirmations reflect the continued stable performance of the collateral since closing. The weighted average rating factor has reduced slightly to 6.64 as of Aug. 7, 2006 compared to 6.76 at last rating review. Since the last review, the portfolio assets have experienced a similar amount of credit upgrades as credit downgrades. The weighted average coupon has also remained stable and is currently at 7.36%. The seasoning of the collateral can be illustrated by the declining weighted average life (WAL). The WAL of the portfolio declined to 1.65 years as of Aug. 7, 2006 versus 2.51 years at last review.

The notes pay principal in sequential order and there are no over-collateralization or interest coverage tests. There are currently no defaulted assets in the portfolio.

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. For more information on the Fitch VECTOR Model, see 'Global Rating Criteria for Collateralised Debt Obligations,' dated Sept. 13, 2004, also available 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.