Fitch Ratings Affirms Salomon Brothers 2001-MM.

NEW YORK -- -Fitch Ratings affirms Salomon Brothers commercial mortgage pass-through certificates as follows:

--$18.9 million class A-1 at 'AAA';

--$210.0 million class A-2 at 'AAA';

--$130.7 million class A-3 at 'AAA';

--$19.3 million class B at 'AAA';

--$24.1 million class C at 'A';

--$10.6 million class D at 'A-'.

The affirmations reflect the reduction in certificate balance since issuance, resulting in increased credit enhancement to the classes. As of the August 2004 distribution date, the transaction's aggregate loan balance has decreased 15.4% to $570.6 million from $674.4 million at issuance. The Sequoia Plaza and Wells Fargo Plaza loans have been paid in full.

The 30 underlying loans are grouped into eight series consisting of four loans (one series has only two loans remaining). The aggregate loan balance of each series is divided into a senior and junior portion. The senior portions are pooled and represent classes A1-D on an aggregate basis. The junior portions are not pooled but provide credit support to each respective series. The junior portions' aggregate current balance is $156.9 million. Principal paydowns are split pro rata between the senior and junior portions.

Based on Fitch-adjusted net cash flow (NCF) and refinance constant for each loan, the weighted average debt service coverage ratio (WADSCR) increased to 1.56 times (x) from 1.43x at issuance. The Fitch NCF is based on servicer-reported net operating income for December 2003 (YE 2003), adjusted for market vacancy and normalized capital expenditures.

Fitch is concerned with the decrease in the performance of loan Series One, which contains three loans of concern: 8260 Greensboro Drive (2.7%), Camelback Community Bank Building (1.7%), and Cabana Crowne Plaza (2.0%). Although three loans of four in Series One have deteriorated since issuance, the junior portion of the loan series provides 31.5% credit support to the senior portion of the series. In addition, the fourth property in the series, 1676 International Drive, which has the largest allocated loan balance in this junior series (53.5%) has improved since issuance.

Occupancy at 8260 Greensboro, an office property in McLean, VA, has decreased to 54.8% as of Dec. 31, 2003 (YE 2003). A major tenant in the building, occupying 38% of net rentable area (NRA), moved out at the end of December 2003. In addition, the lease of another tenant occupying 15% of NRA expires in December 2004. The borrower is actively marketing the space, and Fitch will be monitoring leasing activity. Northern Virginia vacancy rates have improved to 11.8% as of June 30, 2004, compared with 14% as of June 2003. At issuance, vacancy was 12.7% in the submarket.

Occupancy at Camelback Community Bank Building continues to deteriorate. Occupancy decreased to 73% as of YE 2003 from 83% as of YE 2002 and 92% at issuance. The Fitch YE 2003 DSCR decreased to 0.93x, compared with 1.33x at issuance. Although occupancy at the property has declined, the Phoenix office market vacancy rate improved slightly.

Cabana Crowne Plaza, located in Palo Alto, California remains a loan of concern. As of trailing 12 months (TTM) ended July 31, 2004, revenue per available room (revpar) decreased to $72 from $140 at issuance. However, increased food and beverage income, coupled with lower expenses contributed to improved performance. As of YE 2003, the DSCR increased to 1.14x, compared with 1.04x at YE 2002 and 2.51x at issuance.

Fitch is also concerned with the deteriorating performance of two other hotels in the transaction. The Embassy Suites (2.6%) is collateralized by a full service hotel in Atlanta, GA. RevPar has decreased to $51 as of YE 2003 from $80 at issuance. Increased competition in the market, coupled with reduced business travel has increased occupancy and driven the average daily rate (ADR) down. The hotel is expected to benefit long-term from its immediate proximity to the planned Cobb Galleria Performing Arts Center, which is scheduled to start construction by YE 2004. Management at the hotel anticipates increased occupancy in the near term from construction and design crews and in the long-term from performers and theater attendees.

The Sagamore (3.6%) is a resort hotel in upstate New York. RevPar has decreased to $68 as of YE 2003 from $76 at issuance. The Sagamore is a seasonal resort that generates most of its business in the summer months. The borrower has invested significantly in capital expenditures over the past two years to upgrade the property, which is over 100 years old. DSCR as of YE 2003 decreased to 1.23x for the Embassy Suites (from 1.76x at issuance) and to 0.84x for the Sagamore (from 1.79x at issuance).

The decline in both hotels is offset by the improvement of other loans within their respective series. The WADSCR for Embassy Suite's series, Series Six, is 1.46x as of YE 2003, and the WADSCR for the Sagamore's series, Series Seven, is 1.88x as of YE 2003.

Three of the top loans, representing 20.3% of the transaction, have shown improved performance since issuance. Fitch net cash flow and DSCR have increased at the office properties 1676 International Drive (7.7%), Stamford Square (5.7%), and the retail center, Promenade at Westlake (6.3%). The YE 2003 DSCR for 1676 International increased to 1.16x from 1.03x at issuance, DSCR for Stamford Square increased to 1.27x from 1.06x at issuance, and the Promenade at Westlake improved to 1.24x as of YE 2003 from 1.09x at issuance.

Fitch will continue to monitor this transaction, as surveillance is ongoing.