Fitch Affirms 3 & Revises the DR Rating of 1 Class from MCF 1998-MC1

CHICAGO--(Business Wire)--Fitch Ratings revises the Distressed Recovery (DR) rating of
Mortgage Capital Funding, Inc.'s (MCF) commercial mortgage
pass-through certificates, series 1998-MC1, as follows:

--$20.5 million class M to 'CCC/DR3' from 'CCC/DR2'.

In addition, Fitch affirms the following classes:

--Interest-only class X at 'AAA';

--$64.7 million class E at 'AAA';

--$12.9 million class F at 'AAA';

--$38.8 million class G at 'AAA'.

Fitch does not rate the $51.8 million class H, $12.9 million class
J, $12.9 million class K, $32.4 million class L, or $6.8 million class
N certificates. The class A-1, A-2, B, C and D certificates have paid
in full.

The class M DR rating is revised to 'CCC/DR3' from 'CCC/ DR2'
based on actual and anticipated losses

The affirmations of classes E, F and G are based on the
expectation that these classes will pay in full. Currently, 16 loans
(33.6%) are defeased, including three of the top five loans (25.2%).
All but two (1.9%) of the defeased loans have matured and the payoffs
are expected to be reflected in the January 2008 distribution date. At
that time, classes E, F and G will be paid in full. As of the December
2007 distribution date, the pool has paid down 85.1% to $193.2 million
from $1.29 billion at issuance. All of the remaining loans mature by
March 2008.

There was one loan (1.6%), a non-performing balloon asset, in
special servicing as of the December 2007 distribution. The loan is
secured by a multifamily property in Jackson, MI. The property was
paid off at a discount in late December 2007 and proceeds and realized
losses will be reflected in the January 2008 distribution.

A second loan (2.1%), secured by a retail center in Columbus, OH,
was transferred to special servicing in January 2008 due to maturity
default and losses are possible.

Realized and expected losses from the specially serviced loans are
expected to impact class M. Additional losses are possible if the
remaining loans are unable to refinance at their upcoming maturity
dates.

Fitch's Distressed Recovery (DR) ratings, introduced in April 2006
across all sectors of structured finance, are designed to estimate
recoveries on a forward-looking basis while taking into account the
time value of money. For more information on Distressed Recovery
ratings, see the full report ('Structured Finance Distressed Recovery
Ratings'), which is available on the Fitch Ratings web site at
www.fitchratings.com.

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.

Fitch Ratings
Mitchell Brumwell, 312-368-3268
Britt Johnson, 312-606-2341 (Chicago)
Media Relations:
Sandro Scenga, 212-908-0278 (New York)

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