Fitch Ratings Downgrades 1 Class from Heller 1999-PH1

--$7.6 million class M to 'CCC/DR1' from 'B-/DR1'.

In addition, Fitch has affirmed the following classes:

--$456.6 million class A-2 at 'AAA';

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

--$22.7 million class B at 'AAA';

--$20.2 million class C at 'AAA';

--$53 million class D at 'AAA';

--$12.6 million class E at 'AAA';

--$37.9 million class F at 'AAA';

--$17.7 million class G at 'AA+';

--$35.3 million class H at 'A-';

--$20.2 million class J at 'BBB-';

--$7.6 million class K at 'BB+';

--$15.1 million class L at 'B'.

The $5.2 million class N is not rated by Fitch. Class A-1 has paid in full.

The downgrade is the result of expected losses on specially serviced loans. As of the November 2007 distribution date, the pool's balance has been reduced 29.5% to $711.7 million from $1 billion at issuance. Since issuance, 39 loans (27.7%) have defeased.

Thirteen loans (11.4%) are considered Fitch Loans of Concern. Four of these assets are specially serviced (1.6%). The largest specially serviced asset (0.9%) is secured by a multifamily property in Houston, TX and is currently making principal and interest payments. Losses are expected.

The other specially serviced assets (0.6%) are secured by a portfolio of three, cross-collateralized apartment buildings in Colorado Springs, CO. The loans are 90 days delinquent.

The largest Fitch Loan of Concern (5.1%) is an office property located in Franklin Township, NJ. The property is physically vacant, but the tenants are continuing to make lease payments through the lease expiration in April 2009. The anticipated repayment date of this loan is May 2009.

Fitch reviewed the performance and underlying collateral of the two shadow-rated loans in the pool: South Plains Mall (7.8%), a retail mall in Lubbock, TX and the Station Plaza Office Complex (2.4%) in Trenton, NJ. Based on their stable performance, both loans remain investment grade.

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 .

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