Fitch Upgrades 8 Classes of Morgan Stanley Capital I Trust 2003-IQ5.

NEW YORK -- Fitch Ratings upgrades Morgan Stanley Capital I Trust commercial mortgage pass-through certificates, series 2003-IQ5 as follows:

--$30.2 million class C to 'AA+' from 'A+';

--$7.8 million class D to 'AA-' from 'A';

--$5.8 million class E to 'A+' from 'BBB+';

--$6.8 million class F to 'A-' from 'BBB';

--$7.8 million class G to 'BBB' from 'BBB-';

--$5.8 million class H to 'BBB-' from 'BB+';

--$2.9 million class J to 'BB+' from 'BB';

--$4.9 million class K to 'BB' from 'BB-'.

In addition, Fitch affirms the following classes:

--$62.9 million class A-2 at 'AAA';

--$60.0 million class A-3 at 'AAA';

--$373.7 million class A-4 at 'AAA';

--Interest-only classes X-1 and X-2 at 'AAA';

--$22.4 million class B at 'AAA';

--$2.9 million class L at 'B+';

--$1.9 million class M at 'B';

--$1.0 million class N at 'B-'.

Class A-1 has been paid in full. Fitch does not rate the $7.8 million class O.

The upgrades are due to the stable pool performance, defeasance and paydown since issuance. As of the January 2007 distribution date, the pool's aggregate principal balance has decreased 22.4% to $604.7 million from $778.8 million at issuance. Three loans (12.7%) have defeased.

The five credit assessed loans (31% of the pool) remain investment grade. The 200 Berkeley & Stephen L. Brown Buildings (4.1%) and the Invesco Funds Corporate Campus (6.4%) loans have defeased. Fitch reviewed current rent rolls, operating statement analysis reports, and other performance information provided by Master Servicer, Capmark Finance, Inc.

Two Commerce Square (9.4%) is secured by a 40-story class A office building totaling 953,276 square feet (sf) located in Philadelphia, PA. Two of the four pari-passu notes totaling $60 million serve as collateral for this transaction. As of November 2006, occupancy has increased to 99.3% from 97.4% at issuance.

International Plaza (5.9%) is secured by a two level super regional mall that consists of approximately 1.2 million sf, of which 583,490 sf is collateral for the loan. The property is located in Tampa, FL. One of the three pari-passu notes totaling $35.4 million serves as collateral for this transaction. In-line occupancy as of September 2006 improved to 95.6% compared to 92.4% at issuance.

3 Times Square (5.2%) remains stable demonstrated by its October 2006 occupancy of 98.9%, up slightly since issuance. 3 Times Square is secured by an 883,405 sf office building located in Manhattan.

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