Fitch confirms ProSiebenSat.1

Fitch Ratings confirmed ProSiebenSat.1 Media AG's senior unsecured debt at BB following its acquisition by a consortium of investors including Saban Capital Group Inc. The outlook remains negative.

The acquisition will remove the uncertainty stemming from the company having an insolvent and therefore short-term parent in form of Kirch Media, Fitch said. The stability, deep financial resources and expertise offered by the new ownership structure should enable management to increase focus on the operational issues affecting business at the current time.

As part of the transaction the commitment to backstop the capital increase of €280 million, previously guaranteed by the Kirch Media administrator and the Kirch Media banks, is replaced by an equivalent commitment from the new parent company, ProSiebenSat.1 Holding LP. The execution of the capital increase is now expected to occur by the early part of 2004.

The new ownership structure is unlikely to result in a repurchase of ProSieben's 2009 bonds under the change of control clause, Fitch noted.

As previously stated, Fitch continues to monitor the German advertising market, on which ProSieben remains dependent for 95% of its revenues. Sustained improvement in market conditions and deleveraging remain critical to the rating. The agency continues to view the refinancing of the revolving credit facility maturity December 2004 and the 2005 and 2006 bonds as further crucial steps in improving ProSieben's capital structure.

Moody's cuts Highwoods Properties

Moody's Investors Service downgraded Highwoods Realty LP including cutting its senior unsecured debt to Ba1 from Baa3 and Highwoods Properties, Inc. including cutting its preferred stock to Ba2 from Ba1. The outlook is stable.

Moody's said the actions reflect Highwoods' weak operating performance and fixed charge coverage, still-high dividend payout and rising secured debt levels, as well as the expectation that a turnaround in financial performance could be slow.

Although increased leasing activity during the second quarter of 2003 is encouraging, the REIT's recent performance continues to be pressured by weak tenant demand and the lack of job growth in many of its markets. Material sublease and supply levels also continue to crimp Highwoods' office and industrial portfolio operating results. Financially troubled corporate tenants have also contributed to a drop-off in the REIT's portfolio occupancy and earnings.

For the first half of 2003, Highwoods' same-store occupancy fell to 85%, from 89% for the comparable period in 2002, with significant declines in some of its larger markets, such as Memphis, Tampa and North Carolina, Moody's said.

The REIT's same-store NOI (net operating income) performance was down by 10% at June 30, 2003 from the previous year. Average new lease terms have shortened to roughly 3.8 years, from 4.1 years.

While Highwoods has taken steps to address its near-term refinancing needs, the REIT has done, or is likely to do, so with secured debt and asset sales, further increasing its level of secured debt.

Moody's withdraws Normandy ratings

Moody's Investors Service withdrew the Ba1 senior unsecured rating on the $100 million 7.5% notes due 2005 of Normandy Finance Ltd. (now known as Newmont Finance Ltd.), guaranteed by Normandy Mining Ltd. (now known as Newmont Australia Ltd).

The rating withdrawal results from the lack of stand-alone financial information provided for the guarantor, Normandy MiningLtd., following its acquisition in 2002 by Newmont Mining Corp., Moody's said.

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