S&P Lwrs Rtgs on ELOC 8 After Seafield Lease Revised.

Business Editors

LONDON--(BUSINESS WIRE)--Aug. 7, 2003

Standard & Poor's--Standard & Poor's Ratings Services said today that it lowered its credit ratings on the class E and F commercial mortgage-backed floating-rate notes issued by Coronis (European Loan Conduit No. 8) PLC (ELOC 8), an SPE.

The notes have been removed from CreditWatch with negative implications. At the same time, the class A, B, C, and D notes were affirmed (see list below).

The rating action follows the completion of an administration process following the acquisition by Conway Holdings International Ltd. of the entire issued share capital of Orb Securities Ltd., the prior ultimate parent of Orb Warehousing Ltd. (OWL), Orb Commercial Ltd. (OCL and, together with OWL, the Orb borrowers) and Seafield Holdings Ltd. The Orb borrowers are the original borrowers under a loan in the ELOC 8 transaction, while Seafield Holdings was the only tenant of OWL.

The administration process included the obtaining of administration orders in relation to the Orb Borrowers, Seafield Holdings and a number of other affiliated companies, the business and assets of which were then sold to certain newly established companies. Associated with this process was a revision, until January 2006, to the new Seafield lease to a level considered below current market rents. Certain events of default under the Orb loan will not be enforced, including that the escrow account and the amortization reserve account will not be funded to their contractual levels until the interest payment date in January 2006.

Standard & Poor's considers that the strength of contractual loan cash flow is weaker than that at the close of this transaction, and has as a result lowered the ratings on the class E and F notes. It remains to be seen whether this drop in loan cash flow is likely to be sustained, and Standard & Poor's will therefore remain in ongoing discussions with the special servicer, Morgan Stanley Mortgage Servicing Ltd., regarding its special servicing strategy on this loan.

Previous media releases and other articles on the ELOC 8 transaction are available to subscribers of RatingsDirect, Standard & Poor's Web-based credit analysis system, at www.ratingsdirect.com. Alternatively, call one of Standard & Poor's Ratings Desks: London (44) 20-7847-7400; Paris (33) 1-4420-6705; Frankfurt (49) 69-33-999-223; or Stockholm (46) 8-440-5916. Members of the media may contact the Press Office Hotline on (44)20-7826-3605 or via [e-mail].

RATINGS LIST
Coronis (European Loan Conduit No. 8) PLC
GBP547.58 Million Commercial Mortgage-Backed Floating-Rate Notes

Class          Rating
          To            From

Ratings lowered
E         BBB-          BBB/Watch Neg
F         B+           BB/Watch Neg

Ratings affirmed
A         AAA
B         AAA
C         AA
D         A

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Copyright 2003, Standard & Poor's Ratings Services