Business Services Industry

S&P Adds IOS Capital LLC to Select Servicer List

Business Wire, July 24, 2002

Business Editors

NEW YORK--(BUSINESS WIRE)--Standard & Poor's

July 24, 2002--Standard & Poor's Ratings Services today added IOS Capital LLC (IOS Capital), a wholly owned subsidiary of IKON Office Solutions Inc., to its Select Servicer List as an Equipment Lease Servicer.

IOS Capital is the first equipment lease servicer to be included on the Select Servicer List.

The company's addition to the Select Servicer List reflects its well-established servicing track record for office equipment leases on behalf of its parent and for ABS transactions. IOS Capital, based in Macon, Ga., has a management team and professional staff that demonstrate a high degree of industry knowledge and proficiency with regard to servicing leases in the office equipment sector. IOS Capital uses a properly integrated technology platform that has the necessary functionality for addressing a full range of detailed internal management and third-party reporting needs in an efficient manner. IOS Capital's servicing environment denotes a soundly designed organizational structure with stable operating procedures, and has acceptable internal control mechanisms. The company is particularly proactive and effective in its portfolio management, watchlist, recovery, and default management practices to keep accounts current. Additional strengths include the ability to offer a wide variety of invoicing and payment options for its customers. As of June 30, 2002, IOS Capital serviced a $3.2 billion portfolio consisting of nearly 257,000 leases to almost 118,000 lessees. The company's servicing portfolio is diversified among numerous industry sectors and covers lessees based in all geographic regions of the U.S.

Standard & Poor's admits servicers to the Select Servicer List based on a comprehensive assessment of firms' operational capabilities for servicing commercial mortgage, residential mortgage, or asset-backed portfolios. As part of this assessment, Standard & Poor's Servicer Evaluation group reviews each firm's strengths, weaknesses, opportunities, and limitations within the industry, pertaining to its specific product type. Standard & Poor's performs an analysis of a firm's management and organization, entire servicing process, and financial position.

To be included on and remain on the Select Servicer List, a firm must meet the criteria for attaining at least an Average ranking with an outlook of Stable. Inclusion in the list reflects that a firm is, at the very least, performing its duties in an effective and controlled manner, and is in general compliance with investor, regulatory, or agency requirements. Standard & Poor's recognizes that a firm's servicing capabilities must be differentiated within its industry based on the nature of the specific assets being serviced. Therefore, the Select Servicer List categorizes each firm's approval by its product type. The complete Select Servicer List is available and updated monthly on RatingsDirect, Standard & Poor's Web-based credit and analysis system at www.ratingsdirect.com and at www.standardandpoors.com. The August 2002 version of the Select Servicer List will reflect the addition of IOS Capital.