Fitch Upgrades 4 Classes of G-Star 2002-2, Ltd.

NEW YORK -- Fitch Ratings upgrades four classes and affirms four classes of the notes issued by G-Star 2002-2, Ltd. (G-Star) as follows:

--$100,969,405 class A-1MMa notes affirmed at 'AAA/F1+';

--$84,141,171 class A-1MMb notes affirmed at 'AAA/F1+';

--$85,823,994 class A-2 notes at affirmed 'AAA';

--$19,464,266 class A-3 notes at affirmed 'AAA';

--$14,000,000 class BFL notes upgraded to 'AA' from 'A';

--$15,000,000 class BFX notes upgraded to 'AA' from 'A'.

--$10,704,999 class C notes upgraded to 'A-' from 'BBB';

--$5,229,374 class D notes upgraded to 'BB+' from 'BB-'.

Classes BFL and BFX are removed from Rating Watch Positive.

G-Star is a collateralized debt obligation (CDO), which closed Nov. 20, 2002. G-Star is supported by a static pool of commercial mortgage-backed securities (CMBS 50.9%), senior unsecured real estate investment trust (REIT 33.4%) securities, CDOs 5.0%, asset-backed securities (ABS 3.6%), and residential mortgage-backed securities (RMBS 7.1%). Capmark Investments LP (rated 'CAM1' for CDO Asset Management by Fitch) selected the initial collateral.

The upgrades are driven primarily by the improved credit quality of the portfolio, the de-leveraging of the liabilities and the seasoning of the collateral since Fitch's last rating action. Since Fitch's last rating action, 32.8% of the portfolio has been upgraded an average of 2.79 notches and 1.7% has been downgraded an average of one notch. G-Star has also benefited from collateral seasoning. The CMBS portion of the portfolio has shown increasing levels of credit enhancement on an asset-level basis. All overcollateralization and interest coverage ratios have remained stable since inception. There are currently no defaulted assets in the portfolio.

The rating on the class A notes addresses the timely payment of interest and principal, while the rating on the classes B and C notes addresses the ultimate payment of interest and principal. The rating on the class D preference shares addresses the ultimate receipt of the initial class D share rated balance.

Fitch will continue to monitor and review this transaction for future rating adjustments. Additional deal information and historical data are available on the Fitch web site at www.fitchratings.com. For more information on the Fitch VECTOR model, see 'Global Rating Criteria for Collateralised 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.