Fitch Upgrades 3 Classes of Heller Financial's 1999 PH-1

Business Wire, June 21, 2005

NEW YORK -- Fitch Ratings upgrades Heller Financial Commercial Mortgage Asset Corp.'s mortgage pass-through certificates, series 1999 PH-1, as follows:

--$12.6 million class E to 'AAA' from 'AA';

--$37.9 million class F to 'A ' from 'A';

--$17.7 million class G to 'A' from 'A-'.

In addition, Fitch affirms the following classes:

--$73 million class A-1 'AAA';

--$535.6 million class A-2 'AAA';

--Interest-only class X 'AAA';

--$22.7 million class B 'AAA';

--$20.2 million class C 'AAA';

--$53 million class D 'AAA';

--$35.3 million class H 'BBB-';

--$20.2 million class J 'BB';

--$7.6 million class K 'BB-';

--$15.1 million class L 'B';

--$7.6 million class M remains 'CCC'.

The $8.6 million class N is not rated by Fitch.

The upgrades reflect the increased subordination levels from amortization and defeasance. As of the June 2005 distribution date, the pool's balance has been reduced 14.1% to $867.1 million from $1 billion at issuance. The trust has incurred approximately $11.6 million in losses due to the disposition of four assets. In addition, 15 loans (7.4%) have been defeased.

The pool contains three specially serviced loans (1.2%), of which Fitch expects losses to occur on only one. This loan (0.6%) is secured by a retail center in Watauga, TX. The property's performance has suffered since Winn Dixie rejected its lease in June of 2002. The property was recently sold to the lender in a foreclosure sale. Based on recent appraisal values, losses are expected.

Fitch reviewed the performance and underlying collateral of the two credit assessed loans in the pool: South Plains Mall (7.0%) and the Station Plaza Office Complex (2.4%). Based on their stable performance, both credit assessments remain investment grade.

The South Plains Mall, located in Lubbock, TX, consists of 1.1 million square feet (sf), of which 1 million sf is collateral for the loan. Based on data provided by the master servicer, Wachovia Securities, the year-end (YE) 2004 debt service coverage ratio (DSCR) declined slightly, to 1.95 times (x) from 2.09x at issuance. Occupancy at the property has remained stable at 98%.

The Station Plaza Office Complex consists of three office buildings (320,477 sf) located in Trenton, New Jersey. The properties maintain a 100% occupancy level. Based on data supplied by the master servicer, the DSCR has increased slightly since issuance, from 1.26x to 1.27x.

Fitch's rating definitions are available on the agency's public web site, www.fitchratings.com. Published ratings, criteria and methodologies and relevant policies and procedures are also available from this site, at all times. This document will remain on the public site for seven days.