Fitch Releases Report & Rates Aracruz Securitization 'BBB'.

Business Editors

CHICAGO--(BUSINESS WIRE)--May 14, 2004

Fitch Ratings has released its report and assigned a rating of 'BBB' to the $175 million structured financing from Arcel Finance Ltd., a Cayman Islands special-purpose vehicle (SPV). The underlying issuance is a securitization

of existing and future export receivables originated by Aracruz Celulose S.A. (Aracruz), a Brazilian pulp and paper company. In 2002, Aracruz issued its first tranche out of the Arcel Finance Limited (Arcel) program. The 2002 issuance was for $250 million with a seven-year tenor. This issuance was rated 'AAA' by Fitch in recognition of a full financial guarantee provided by XL Capital Assurance, Inc. The second tranche was issued in 2003 with an eight year tenor for $400 million; this issuance was rated 'BBB' on a standalone basis.

This latest issuance, which is the third from the program, is for $175 million, has an eight year final maturity and will increase the program size to $825 million from $650 million. The outstanding balance of the program as of May 7, 2004 is $813 million. The combined issuances are from a single program and share rights to cash flows on a pari passu basis. Fitch further affirms the 'AAA' rating for the 2002 series with an underlying rating of 'BBB,' as well as the 'BBB' rating for the 2003 series.

For a complete understanding of Fitch's analysis of the Aracruz export receivables securitization corporate and structured transaction reports are available on Fitch's website at 'www.fitchratings.com'.