Fitch Ratings Upgrades TIAA Real Estate CDO 2003-1.

CHICAGO -- Fitch Ratings upgrades four classes and affirms three classes of the notes issued by TIAA Real Estate CDO 2003-1 Ltd./TIAA Real Estate CDO 2003-1 Corp (TIAA Real Estate CDO 2003-1). The affirmations and upgrades are the result of Fitch's review process and are effective immediately:

-- $213,949,580 class A-1 MM notes affirm 'AAA'/'F1+';

-- $10,000,000 class B-1 notes upgrade to 'AA+' from 'AA';

-- $2,000,000 class B-2 notes upgrade to 'AA+' from 'AA';

-- $16,000,000 class C-1 notes upgrade to 'A' from 'A-';

-- $14,000,000 class C-2 notes upgrade to 'A' from 'A-';

-- $13,500,000 class D notes affirm 'BBB';

-- $12,000,000 class E notes affirm 'BB'.

TIAA Real Estate CDO 2003-1 is a collateralized debt obligation, which closed Nov. 6, 2003, supported by a static pool of commercial mortgage-backed securities (51.65% (CMBS)), senior unsecured real estate investment trust securities (45.77% (REITs)), and collateralized debt obligations (2.56% (CDOs)). Teachers Advisors, Inc. (TAI)a subsidiary of TIAA serves as the collateral manager.

The upgrade of the class B and C notes is driven primarily by the improved credit quality of the portfolio. Since the 2003 close, approximately 40% of the portfolio has been upgraded. The weighted average rating factor (WARF) has improved to 5.48('BBB/BBB-') from 6.81('BBB/BBB-)' as of the March 2006 trustee report. In addition, the CMBS portion of the portfolio has shown increasing levels of credit enhancement on an asset-level basis as well as low delinquency levels. All par and interest coverage ratios have remained stable since inception. There are currently no defaulted assets in the portfolio.

Fitch Ratings has discussed TIAA Real Estate CDO 2003-1 with TAI and will continue to monitor the transaction closely to ensure accurate ratings.

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 the Fitch VECTOR model, see 'Global Rating Criteria for Collateralized Debt Obligations,' dated Sept. 13, 2004, also available at www.fitchratings.com.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.