Fitch Downgrades STEERS 2004 R-GM to 'BB+'

Business Wire, May 25, 2005

NEW YORK -- Fitch Ratings downgrades the rating of the debt units of medium-term Structured Enhanced Return Trust 2004 series R-GM (STEERS) to 'BB ' from 'BBB-'.

STEERS, which closed on Jan. 16, 2004, is a single name credit-linked note that enables investors to gain exposure to an obligation of General Motors Acceptance Corp (GMAC). The 'BB ' rating is linked to the ratings of GMAC (rated 'BB ' by Fitch), Merrill Lynch & Co., Inc. (rated 'AA-/F1 ' by Fitch), Merrill Lynch Derivatives Products AG (rated 'AAA' by Fitch), and the legal structure of the transaction.

On the closing date, STEERS entered into a fixed-for-fixed interest rate swap with Merrill Lynch Capital Services, Inc., that allowed the debt unitholders to receive quarterly distributions of interest instead of the semi-annual interest payments of the GMAC obligation. Merrill Lynch & Co., Inc. is the swap guarantor and Merrill Lynch Derivatives Products AG is the guarantor of the swap breakage fee, if any.

Fitch will continue to monitor and review this transaction for future rating adjustments. Additional deal information and historical data are available on the Fitch Ratings web site at www.fitchratings.com. For more information on the Fitch Vector model, see 'Global Rating Criteria for Collateralised Debt Obligations,' dated Sept. 13, 2004, also available at www.fitchratings.com.