Fitch Ratings Alerts CMBS Investors To Additional Kmart Exposure.

Business Editors

NEW YORK--(BUSINESS WIRE)--March 15, 2002

Fitch Ratings, the international rating agency, today alerts commercial mortgage securities (CMBS) investors about the additional exposure the recent Kmart lease rejections will have on bonds rated by Fitch. On March 8, 2002, Kmart announced that it would close 284 additional stores of which a total of 45 stores are represented in 34 deals rated by Fitch. For this analysis, Fitch applied the same parameters described in the press release 'Fitch Ratings Alerts CMBS Investors To Impact Of Kmart Exposure', dated Feb. 12, 2002. As a result, ratings on 27 deals with newly rejected Kmart leases are affirmed, 2 deals are placed on Rating Watch Negative due to insufficient projected credit enhancement and 1 deal is being downgraded due to further deterioration of the pool. Deals affirmed by Fitch are listed at the end of this press release. Deals placed on Rating Watch Negative and downgraded are listed below. Individual press releases dated March 14, 2002, provide more detail on each transaction.

Deals being placed on Rating Watch Negative by Fitch:

-- GMAC 2000-C2, 3.05% Kmart exposure, class M, rated 'B-', and class N rated 'CCC' is placed on Rating Watch Negative.

-- MS 1997-HF-1, 2.07% Kmart Exposure, class J, rated 'B-' is placed on Rating Watch Negative.

Deal being downgraded by Fitch:

-- CSFB 1997-C2; 6.77% Kmart exposure, class F rated, 'BB' and class G, rated 'BB-' are placed on Rating Watch Negative, class H, rated 'B' is being downgraded to 'CCC' and class I. rated 'B-' is being downgraded to 'CCC'. The rating action reflects the weakening of the transaction due to the number of loans of concern in the deal including the loans with Kmart exposure.

Certain additional transactions with Kmart and significant non-Kmart collateral issues may face rating actions when updated information is reviewed.

Fitch will continue to closely monitor transactions with Kmart exposure and take the appropriate action as further news is disclosed.

Deals Affirmed by Fitch Ratings:

-- ASC 1997-D5;

-- Bear Stearns 1998-C1;

-- CAPCO 1998-D7;

-- Chase 2000-C3;

-- CSFB 1998-C1;

-- CSFB 1998-C2;

-- CSFB 2001-CK1;

-- CSFB 2001-CF2;

-- DLJ 1998-CF1;

-- DLJ 2000-CKP1;

-- FULB 1997-C2;

-- FUNB 2001-C3;

-- GMAC 1999-C2;

-- GS 1996-PL;

-- GS 1998-C1;

-- Heller 2000 PH1;

-- LB-UBS 2001-C3;

-- Merrill Lynch 1997-C2;

-- Morgan Stanley 1998-WF1;

-- Morgan Stanley 1998-XL1;

-- Morgan Stanley 1999-RM1;

-- MSDW 2001-Top 3;

-- PNC 2000-C1;

-- Pru Rock 2001-C1;

-- SASCO 1996-CFL;

-- SBMS 2000-C2

-- TIAA 2001-C1.