Fitch Ratings Affirms Trizec Hahn Series 2001-TZH.

NEW YORK -- Fitch Ratings has affirmed Trizec Hahn, series 2001-TZH, as follows:

-- $52.9 million class A-2 'AAA';

-- $91.9 million class A-3FL 'AAA';

-- $78.9 million class A-3 'AAA';

-- $240.6 million class A-4 'AAA'

-- $16.9 million class B-3FL 'AAA';

-- $14.5 million class B-3 'AAA';

-- $47 million class B-4 'AAA';

-- $101.4 million class C-3 'AA';

-- $45.6 million class C-4 'AA';

-- $106.1 million class D-3 'A-';

-- $40.7 million class D-4 'A-';

-- $73.3 million class E-3 'BBB';

-- $32.3 million class E-4 'BBB'.

Classes A-1FL and B-1FL have been paid in full.

The affirmations are due to the stable performance of the collateral over the past year, despite the heavy concentration of assets in only one property type (office) and in only four principal markets. The certificates are backed by fee and leasehold mortgages on 18 cross collateralized office properties with an overall occupancy rate of 87% as of March 31, 2005, compared to 86% at March 31, 2004. The current Fitch debt service coverage ratio (DSCR) for the transaction is 1.53 times (x) vs. 1.30x at issuance. The collateral balance of the transactions has declined by 34.6% since issuance as a result of the release of six properties in 2004 and the substitution of two others. As a result of the releases and substitutions, the average debt per square foot has declined to $78.67 from $80.78 at issuance.

The highest concentration of assets (43.4%) is located in Houston, a poorly performing U.S. office market with an average vacancy rate of 17.9%. The average vacancy rate of the Houston collateral in this transaction is 15%. The Allen Center (31.5%) occupancy has remained at 86%, the same as it was at year-end (YE) 2003, but Continental Center 1 (9.9%) has seen an occupancy decline to 81% from 92% for the same period. The Continental Center II property (2%) has experienced a slight increase in vacancy at YE 2004 to 12% from. 11% at YE 2003.

The Washington D.C. collateral makes up 19.3% of the transaction and has an average occupancy rate of 96% in six of the seven properties, including those in suburban markets. The other D.C. property is 100% vacant. The D.C. metropolitan office market is strong with an overall vacancy rate of 9.9%. Since the previous review, the Reston Crescent property (2%), which was 100 % vacant at YE 2003, was fully leased up to Nextel Communications. The Reston Unisys (2.2%) asset, however, became 100% vacant as of March 31, 2005. The 1250 Connecticut Ave (2.7%) and Beaumeade Tech Center (1.6%) properties are 100% occupied, while the Wilson St. (2.8%) buildings are 99% occupied. The 2401 Pennsylvania Ave (1.9%) property is 93% occupied and the Silver Spring Metro (6.18%) property is 83% occupied.

Occupancy rates in the Atlanta collateral (16.3%) and Chicago (16.3%) both exceed the market occupancy rates in those cities. In Atlanta, the occupancy at Interstate North (5.4%), an office park of 11 buildings in Atlanta has improved to 93% from 83% at year end 2003, while the occupancy at the Colony Square (6.5%) property increased to 84% from 79% over the same period. While the overall Atlanta market remains weak, there has been an improvement in office occupancy over the past year.

All of the assets in the Chicago market are outperforming the market, with none having an occupancy rate below 92%. The average vacancy rate in Chicago office is currently 17.7%.

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