Fitch Ratings Affirms Putnam Structured Product CDO 2001-1, Ltd.

Business Editors

NEW YORK--(BUSINESS WIRE)--Aug. 18, 2003

Fitch Ratings affirms seven classes of notes issued by Putnam Structured Product CDO 2001-1, Ltd.

The following seven classes have been affirmed:

-- $56,000,000 class A-1MM-a notes 'AAA/F1+';

-- $50,000,000 class A-1MM-b notes 'AAA/F1+';

-- $105,000,000 class A-1SS notes 'AAA';

-- $35,000,000 class A-2 notes 'AAA';

-- $24,000,000 class B notes 'AA';

-- $9,000,000 class C-1 notes 'BBB';

-- $9,000,000 class C-2 notes 'BBB'.

Putnam Structured Product CDO 2001-1 is a collateralized debt obligation (CDO) that closed in November 2001. The portfolio consists of residential mortgage-backed securities (RMBS; 52.94%), real estate investment trusts (REITs; 15.90%), asset-backed securities (ABS; 13.79%), commercial mortgage-backed securities (CMBS; 12.96%), collateralized debt obligations (CDOs; 3.05%), and synthetic securities (1.36%).

The class A-1MM notes are rated 'F1+', addressing the noteholders' ability to exercise the put to the put counterparty on its next applicable remarketing date, which will be no later than one year from its prior remarketing date.

According to the June 30, 2003 trustee report, the class A/B overcollateralization (OC) was 112.12% and the class C OC was 105.12%, relative to test levels of 105% and 101%, respectively. The report also indicated that no pay downs have occurred on any of the note classes, and the overall credit quality of the portfolio has improved since closing. However, there are two distressed assets in the portfolio that amount to 1.70% of the outstanding balance.

Fitch will continue to monitor this transaction. Deal information and historical data on Putnam Structured Product CDO 2001-1 is available on the Fitch Ratings web site at 'www.fitchratings.com'.