Fitch Upgrades 2 Classes of Salomon Brothers 2001-MM

Business Wire, August 1, 2006

NEW YORK -- Fitch Ratings upgrades two classes of Salomon Brothers commercial mortgage pass-through certificates, series 2001-MM, as follows:

-- $24.1 million class C to 'AA' from 'A';

-- $10.6 million class D to 'A ' from 'A-'.

In addition, Fitch affirms the following classes:

-- $3.6 million class A-2 at 'AAA';

-- $130.7 million class A-3 at 'AAA';

-- Interest only class X at 'AAA';

-- $19.3 million class B at 'AAA'.

The upgrades are primarily the result of the payoff of two loans, Twinbrook Metro Plaza and Desert Samaritan Medical, since Fitch's last rating action. As of the July 2006 distribution date, the transaction's aggregate loan balance has decreased 49.8% to $338.3 million from $674.4 million at issuance.

The 22 underlying loans are grouped into eight series, each of which consisted of four loans at issuance. The aggregate loan balance of each series is divided into a senior and junior portion. The senior portions are pooled, and represent classes A1 through D on an aggregate basis. The junior portions are not pooled, but provide credit support to each respective series. Principal paydowns are first applied toward the senior portion of each loan group. Only after the entire senior portion of each loan group is paid off in full, will the respective junior portions begin receiving principal payments. Losses are applied in reverse sequential order, first through each of the respective junior loan groups and then to the pooled portion of the transaction.

Based on Fitch adjusted net cash flow (NCF) and refinance constant for each loan, the weighted average debt service coverage ratio (DSCR) increased to 1.72 times (x) from 1.43x at issuance. This number has increased from the year-end (YE) 2004 DSCR of 1.55x. Southpark Towers II, University Commons and The Sagamore Resort, which had previous declines in NCF, have improved since YE 2004. Glenpointe Center East and Preston Sherry Plaza in Loan Group 5 have shown declines in their Fitch adjusted net cash flows since YE 2004, primarily due to flat revenue and increased expenses, Occupancy remains stable at both properties. While Fitch will continue to monitor the performance of these loans, they are not considered loans of concern.

2777 East Camelback Road, an office property in Phoenix, AZ, is the only loan in the transaction with a DSCR of less than 1.0x. As of YE 2005, occupancy increased to 98% from 85% at YE 2004. 2005 NCF declined due to a decrease in expense reimbursements as the result of two large leases renewing and adjusting their respective expense stops. However, the Group's rake portion, which is not rated by Fitch, is sufficient to absorb any losses and the pooled portion of the trust would not be impacted.

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