Fitch Affirms Capital Lease Funding, Series 1997-CTL-1

Business Wire, March 24, 2005

CHICAGO -- Fitch Ratings affirms Capital Lease Funding Securitization, L.P.'s corporate credit-backed pass-through certificates, series 1997-CTL-1, as follows:

-- $16.4 million class A-2 'AAA';

-- $17.8 million class A-3 'AAA';

-- Interest-only class IO 'AAA';

-- $15.5 million class B 'AA ';

-- $15.5 million class C 'A';

-- $6.1 million class D 'BBB-';

-- $6.8 million class E 'B '.

The $1.9 million class F and the $1.3 million class G certificates remain at 'CCC'.

The affirmations are the result of the transaction paydown and subsequent increase in credit enhancement offsetting the overall decline in the tenants' ratings. As of the March 2005 distribution date, the pool has paid down 37.1% to $81.4 million from $129.4 million at issuance. There have been no specially serviced loans and no realized losses since issuance.

Fitch is concerned with the two Winn-Dixie loans. On Feb. 21, 2005, Winn-Dixie Stores, Inc. (Winn-Dixie) filed for Chapter 11 bankruptcy protection. The Winn-Dixie loans, both secured by properties located in Slidell, LA, represent 7.9% of the pool as of the March 2005 distribution date. While the bankruptcy filing is seen as a negative event for the pool, both stores are currently open and operating. Fitch will closely monitor future lease rejection announcements to assess the impact of any new developments to the pool.

The pool's tenants consist of CVS Corp. (26.2%), Circuit City (19.5%), Rite Aid Corp. (12.2%), RadioShack Corp. (8.9%), Winn-Dixie (7.9%), New York State Electric & Gas Corp. (6.4%), Food Lion (Delhaize America Inc.) (5.2%), Royal Ahold N.V. (4.8%), Walgreen Co. (4.0%), AutoZone Inc. (3.6%), and HCA Inc. (1.5%). The weighted average rating of the tenants is 'B '/'B'. In January 2005, there was a $14.8 million payoff of a loan in which Health Care Service Corp. (rated 'A-' by Fitch) guaranteed the lease.