Fitch Upgrades Crest Clarendon Street 2002-1.

NEW YORK -- Fitch has upgraded three and affirmed two classes of notes issued by Crest Clarendon Street 2002-1 (Crest Clarendon) as follows:

--$189.2 million class A affirmed at 'AAA';

--$29 million class B-1 upgraded to 'AA' from 'A+';

--$10 million class B-2 upgraded to 'AA' from 'A+';

--$15 million class C upgraded to 'A-' from 'BBB+';

--$10 million class D affirmed at 'BB'.

Fitch does not rate the $8 million Preferred Shares.

Crest Clarendon is a collateralized debt obligation (CDO), which closed Sept. 19, 2002, supported by a static pool of commercial mortgage-backed securities (CMBS: 53.15%) and real estate investment trust (REIT: 46.85%) debt. Massachusetts Financial Services Company (MFS) Investment Management selected the initial collateral and serves as the collateral administrator.

The upgrades are driven primarily by the improved credit quality of the portfolio, seasoning of the collateral, and delevering of the capital structure. The CDO has paid down $38.8 million since issuance, representing 12.95% of the collateral. Since Fitch's last review, 44.23% of the portfolio has been upgraded an average of 2.2 notches and 3.54% has been downgraded an average of one notch. The weighted average rating factor (WARF) has improved to the 'BBB+/BBB' category from the 'BBB/BBB-' at last review and 'BBB-/BB+' at issuance. No asset has a rating less than 'BB+'. The weighted average life (WAL) has decreased to 3.78 from 4.72 at last review. Interest collateralization (IC) tests have remained stable and overcollateralization (OC) tests have continued to improve due to delevering of the CDO liabilities. There are no defaulted or distressed assets in the portfolio. The CMBS assets in the collateral pool range from the 1997 vintage to the 2002 vintage with none being first loss classes. Due to defeasance and amortization, Fitch believes these CMBS vintages are a positive factor in this transaction.

The rating of the class A addresses the likelihood that investors will receive full and timely payments of interest, as per the governing documents, as well as the stated balance of principal by the legal final maturity date. The ratings of the classes B-1, B-2, C, and D notes addresses the likelihood that investors will receive ultimate and compensating interest payments, as per the governing documents, as well as the stated balance of principal by the legal final maturity date.

Fitch conducted cash flow modeling utilizing various default timing and interest rate scenarios to measure the breakeven default rates going forward relative to the minimum cumulative default rates required for the rated liabilities.

Fitch will continue to monitor and review this transaction for future rating adjustments. Additional deal information and historical data are available on the Derivative Fitch web site at www.derivativefitch.com. For more information on the Fitch VECTOR Model, see 'Global Rating Criteria for Collateralized Debt Obligations,' dated Oct. 4, 2006 and also available on Fitch's web site at www.derivativefitch.com.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.derivativefitch.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. Fitch means Fitch, Inc., Fitch Ratings, Ltd. and their subsidiaries including Derivative Fitch, Inc. and Derivative Fitch Ltd. and any successor or successors thereto.