S&P Assigns Ratings to RCC Trust III's Japanese CMBS.

Business Editors

TOKYO--(BUSINESS WIRE)--July 17, 2003

Standard & Poor's Ratings Services said today that it had assigned its ratings to RCC Trust III JPY10 billion floating-rate senior trust certificates classes 1-4 due 2008. The certificates are backed by real estate-secured

The portfolio pool consists of nonperforming loans, subperforming loans, and performing loans. Subperforming and performing loans account for 80% of the overall portfolio. This transaction has been arranged by Lehman Brothers Japan Inc. and involves the securitization of loan receivables sold by domestic financial institutions to Resolution & Collection Corp. (RCC) and other organizations that perform a similar role of acquiring and resolving bad loans.

Standard & Poor's ratings address the full and timely payment of interest and the ultimate repayment of principal by the transaction's legal final maturity date of 2008.

The ratings are based on:

-- The quality of the real estate-secured loans in the portfolio,

which ultimately backs the senior certificates;

-- The level of credit support provided to each senior

certificate by the subordinated classes;

-- The servicer's capabilities in realizing proceeds from the

liquidation of assets in a timely manner;

-- Ample liquidity support provided by cash reserves; and

-- The sound nature of the transaction's legal structure.

RATINGS ASSIGNED
JPY10 billion floating-rate senior trust certificates due 2008
CLASS                          AMOUNT                   RATING
1                              JPY6.0 bil.                AAA
2                              JPY1.5 bil.                AA
3                              JPY1.3 bil                 A
4                              JPY1.2 bil.                BBB

Copyright 2003, Standard & Poor's Ratings Services