Fitch Rates Morgan Stanley Dean Witter Global Debt `AA'

Business Wire, June 7, 2000

Business Editors

NEW YORK--(BUSINESS WIRE)--June 7, 2000

Fitch, the international rating agency, has assigned a rating of `AA' to Morgan Stanley Dean Witter & Co.'s (MSDW) global debt offering. A total of $3 billion in fixed-rate securities was priced in two parts. The offering consisted of $2.5 billion of 5-year notes that carry a coupon of 7.75 percent. The remainder of the $3 billion was represented by 10-year notes that carry a coupon of 8 percent.

Fitch's ratings reflect MSDW's strong market position in its main business segments, its consistent and diversified profits, and the firm's record operating performance through 1999. Additionally, the firm's ratings also incorporate a highly liquid and reasonably leveraged balance sheet, effective risk-management infrastructure, sound alternative liquidity/contingency funding plans, and prudent holding company financial policies and funding structure. Earnings volatility at MSDW has been minimal as the revenue and earnings from retail brokerage, asset management and credit cards remain healthy. Profitability measures for yearend 1999 reflect continued record growth in earnings with significant contributions from its investment banking activities and growth overseas.

The current strategic expansion of credit card and retail operations into the UK and Japan, respectively, reflects a conservative approach to the firm's continuing search for growth opportunities, core franchise strength and incremental diversification. While MSDW continues substantial common stock repurchase activity, strong internal capital generation and compensation-related issuance have offset this and leverage measures remain conservative in a comparative context. MSDW's Rating Outlook is viewed as Stable.