S&P Asgns Prelim AAA Rtg to GHLC Series 7 Japan RMBS.

Business Editors

TOKYO--(BUSINESS WIRE)--Standard & Poor's

July 22, 2002--Standard & Poor's today assigned its preliminary triple-'A' rating to Government Housing Loan Corp.'s (GHLC) JPY100 billion Series 7 fixed-rate residential mortgage-secured pass-through notes.

The notes are ultimately secured by a pool of residential mortgage loans originated by GHLC.

The preliminary rating is based on information as of July 22, 2002. Subsequent information

may result in the assignment of a final rating that differs from the preliminary rating. A final rating will be assigned after the amount and exact terms of the notes are finalized and a full rating analysis is completed, including a satisfactory review of the final pool, cash flow modeling, final structure, transaction documents, and legal and tax opinions.

Standard & Poor's preliminary rating addresses the timely payment of interest or interest distribution in the case of beneficiary certificates, allowing for a three-month grace period, and the ultimate repayment of principal by the transaction's legal final maturity in August 2037.

This transaction will be the seventh structured note issuance originated by GHLC. The notes are expected to be backed by JPY111.6 billion of beneficiary certificates issued from a trust created with Mitsubishi Trust & Banking Corp. GHLC will entrust about 5,663 residential mortgage-loan contracts worth about JPY111.6 billion to the trust, along with security rights for each mortgage. The loan pool is comprised of new homeowner loans (29.2%), apartment purchase loans (26.5%), condominium loans (37.6%), and constructed home loans (6.7%). GHLC will also act as servicer for the transaction, Mitsubishi Trust as backup servicer, and Mizuho Corporate Bank Ltd. as trust administrator. Due to the structural features of this transaction, the ratings on the notes are dependent to a certain extent upon the credit quality of GHLC.

An English-language presale report for this transaction is available on RatingsDirect, Standard & Poor's premier Web-based credit analysis system, at www.ratingsdirect.com. The report is also available on Standard & Poor's Web site at www.standardandpoors.com. Click on Presale Reports, and under Structured Finance, select Residential Mortgage-Backed Securities. A Japanese-language version of the report is available via Standard & Poor's Japan CreditWire on Bloomberg Professional at SPCJ<GO>.

Copyright 2002, Standard & Poor's Ratings Services