Fitch Upgrades G-Star 2002-1, Ltd.

CHICAGO -- Fitch upgrades three and affirms three classes of notes issued by G-Star 2002-1, Ltd. (G-Star 2002-1). These rating actions are the result of Fitch's review process and are effective immediately:

--$139,931,091 class A-1MM notes affirmed at 'AAA/F1+';

--$62,956,183 class A-2 notes affirmed at 'AAA';

--$23,000,000 class BFL notes upgraded to 'AA' from 'A+';

--$27,300,000 class BFX notes upgraded to 'AA' from 'A+';

--$16,250,000 class C notes upgraded to 'BBB' from 'BBB-';

--$3,405,253 class D notes affirmed at 'BB'.

G-Star 2002-1 is a collateralized debt obligation (CDO) that closed April 25, 2002. G-Star is supported by a static pool of commercial mortgage-backed securities (CMBS; 51.3%), senior unsecured real estate investment trust securities (REITs; 46.3%), and asset backed securities (ABS; 2.4%). G-Star 2002-1 is managed by Capmark Investments LP (CDO asset manager rating of 'CAM1' for commercial real estate assets by Fitch).

The upgrades are driven primarily by the stable credit quality of the portfolio, the seasoning of the collateral and deleveraging of the capital structure. The Fitch (WARF) has improved and remains in the 'BBB/BBB-' category. According to the most recent trustee report, dated May 18, 2007, all overcollateralization and interest coverage ratios have improved and continue to pass their covenants. The underlying portfolio includes one defaulted asset representing 2% of the $292.9 million of total collateral and there are no other assets rated below 'B+'.

All of the CMBS assets in the portfolio were issued prior to 2003. The highest single vintage concentration is 1998 (15.3%). Due to defeasance and amortization, Fitch believes that the vintage of the underlying CMBS collateral is a positive factor in this transaction.

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.

The rating of the class A-1MM and A-2 notes 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. In addition, the class A-1MM note short term rating addresses the noteholders' ability to put the notes back to the put provider on its next applicable remarketing date, which will be no later than six months from its prior remarketing date. The rating on the class B and C notes addresses the ultimate payment of interest and principal. The rating of the class D notes addresses the likelihood that investors will receive their stated balance of principal by the legal final maturity date. The class D notes have received approximately $6,614,747 of the initial $10,200,000 balance since closing.

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 Collateralised Debt Obligations,' dated Oct. 4, 2006 and also available 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.