Fitch Upgrades First Chicago/Lennar Trust I 1997-CHL1 Class B.

Business Editors

NEW YORK--(BUSINESS WIRE)--Nov. 1, 2002

First Chicago/Lennar Trust I, series 1997-CHL1, $83.6 million class B commercial mortgage certificates are upgraded to 'A-' from 'BBB+' by Fitch Ratings. In addition, Fitch affirms the following classes: $36.7 million class C at 'BBB'; $78 million class D at 'BB', $119.4 million class E at 'B', $13.8 million class F at 'B-' and $18.4 million class G at 'CCC'. The class H certificates are not rated by Fitch. Since Fitch's last review, the ratings on classes A and IO have been withdrawn as the certificates have been paid in full. The rating actions follow Fitch's annual review of the transaction, which closed in April 1997.

The upgrade is primarily due to the increased subordination on class B which is now the most senior class in the transaction. Almost 17% of the pledged certificates are now rated 'BBB-' or better by Fitch compared to 0% at issuance. However, 20.4% of the pledged certificates are now rated 'CCC' or worse or not rated compared to only 9.6% at issuance. Furthermore, one underlying transaction, Nomura Asset Securitization Corp.'s 19994-MD1 (NASC 94-MD1) realized a large loss which translated into a $12 million loss to the trust's class H certificates. After taking into account the ratings migrations, the realized losses, and expected losses, the credit enhancement to class B warrants the upgrade referenced above and the credit enhancement to the remaining classes in the trust is sufficient for affirmation.

The certificates are secured by 42 subordinate commercial mortgage pass-through certificates (pledged certificates) from 22 separate commercial mortgage securitizations (underlying transactions). The underlying transactions, backed by a variety of property types, were securitized from 1992 to 1997 by various issuers and, as of the October 31, 2002 distribution date, have a current aggregate certificate balance of approximately $3.7 billion, down from $8.8 billion at closing. The transaction's certificate balance has decreased by 18.7% to $373.4 million, from $459.1 million at closing. The decrease in certificate balance is due to paydowns of $72.3 million on seven of the pledged certificate classes and realized losses of $13.3 million on five of the pledged certificate classes.

Fitch formally rates and monitors 21 of the 22 underlying transactions, approximately 98% of the re-remic by balance. The remaining transaction is assessed and monitored internally. Fitch's current ratings or credit assessments on the pledged certificates compared to origination are as follows:

-- At or above 'BBB-' - 16.9% compared to 0.0%;

-- 'BB' - 34.4% compared to 47.3%;

-- 'B' - 28.2% compared to 43.1%; and

-- At or below 'CCC' or not rated - 20.4% compared to 9.6%.

Since last review, Fitch has upgraded ten of the pledged certificates (27.1% of the re-remic transaction) and downgraded four (8%). The upgraded certificates are part of the following underlying transactions: MSC 1996-WF1 (representing 9% of the re-remic transaction), SASCO 1996-CFL (7.2%), NLFC 96-1 (3.6%), CSFB 1995-MF1 (2.7%), KSMC 1995-C1 (2.2%), MLMI 1995-C1 (1.3%), and MLMI 1994-C1 (1.1%). The downgraded certificates are part of the following transactions: PRU 95-MCF2 (6.3%) and NASC 1994-MD1 (1.7%). Since the last review, three pledged certificates have paid in full: CSFB 95-AEW1, class E; RTC 95-C1, class E; and RTC 92-C8, class E.

As of the Oct. 31, 2002 distribution date, total delinquencies have increased to 3.47% of the outstanding balance of the underlying transactions from 2.01% at origination and 3.10% last year. Currently, 2.28% of the underlying transaction balance is 30, 60, or 90 days delinquent compared to 1.75% last year, and 1.19% is in foreclosure or real estate owned (REO) compared to 1.35% last year.

Fitch will continue to closely monitor this transaction, as surveillance is ongoing.