Fitch Upgrades NorthStar Realty Finance Corp.'s CRE CDO Asset Manager Rating to 'CAM2'

Business Wire, July 30, 2008

NEW YORK -- Fitch Ratings has upgraded NorthStar Realty Finance Corp.'s (NorthStar) U.S. commercial real estate (CRE) CDO asset manager rating to 'CAM2' from 'CAM2-'. NorthStar's 2006 CAM rating was re-scaled to match updated criteria prior to Fitch's annual review and CAM rating update.

NorthStar's rating upgrade reflects the build-out of a strong asset management team, the stability and tenure of staff with real estate experience, and on-going enhancements to portfolio management tools. NorthStar continues to demonstrate a disciplined investment and surveillance process guided by experienced senior management.

NorthStar's 'CAM2' rating is based on the firm's composite score which represents a weighted average based on the scores assigned for each group of criteria factors summarized below. This composite score is used to establish a systematically applied quantitative link between its asset manager rating and Fitch's CDO rating criteria, in accordance with the approach outlined in the Fitch report 'Reviewing and Rating CDO Asset managers' dated Jan. 2, 2008, available on the Fitch web site at www.fitchratings.com.

--Company and Management Experience '2';

--Staffing '2';

--Procedures and Controls '2-';

--Portfolio Management '2 ';

--CDO Administration '2';

--Technology '2';

--CDO Portfolio Performance '2'.

NorthStar is an internally managed commercial real estate (CRE) finance company that operates as a real estate investment trust (REIT). NorthStar's primary activities include originating and investing in loans secured by CRE assets, investing in securities backed by CRE assets and owning and acquiring properties net leased to corporate tenants.

Fitch rates CDO asset managers by asset class, on a scale of 1 to 5, with 1 being the highest rating. The rating scale includes plus (' ') and minus ('-') designations, along with flat ratings. These ratings are based on a standardized scorecard methodology that includes factors in each of the seven groups as noted above.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.