Fitch Ratings Affirms Preferred Term Securities VIII, Ltd.

NEW YORK -- Fitch Ratings affirms five classes of notes issued by Preferred Term Securities VIII, Ltd. (PreTSL VIII). These affirmations are the result of Fitch's review process and are effective immediately:

-- $225,000,000 senior A-1 notes at 'AAA';

-- $100,800,000 senior A-2 notes at 'AAA';

-- $58,700,000 mezzanine B-1 notes at 'A';

-- $30,700,000 mezzanine B-2 notes at 'A';

-- $75,000,000 mezzanine B-3 notes at 'A'.

PreTSL VIII is a collateralized debt obligation (CDO) which closed Dec. 19, 2002. PreTSL VIII is a static pool composed primarily of bank and thrift trust preferred securities. Included in this review, Fitch performed a full analysis of the collateral included in the portfolio.

Since closing the collateral has continued to perform, with a slight improvement in the weighted average bank score as determined by the Fitch Bank Scoring Model. To date, there have been no obligors that have deferred interest payments at any time. Three institutions totaling 2.16% of the initial portfolio have been acquired by separate institutions not previously included in the portfolio, allowing obligor exposure to remain unchanged. The senior and mezzanine overcollateralization (OC) ratios are currently at 156.5% and 104%, respectively, and are both in compliance with their performance triggers of 128% and 103%.

As a result of this analysis, Fitch has determined that the current ratings assigned to the senior and mezzanine notes still reflect the current risk to noteholders. 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 Fitch's approach to rating CDOs of trust preferred securities, see the special report, 'Rating Criteria for Bank and Trust Preferred CDOs' dated July 31, 2002 and also available at 'www.fitchratings.com'.