Wall Street Watch

Yen 10 Billion of Debt Securities Affected

Tokyo, October 15, 2002 -- Moody's Investors Service has assigned its A3 rating to Yen 10 billion 2.9% series 58 senior unsecured domestic straight bonds, due 2032, of Mitsubishi Estate Co., Ltd. (MEC). The rating outlook is stable. The rating reflects steady cash flow from MEC's core lease properties and its adequate financial flexibility and financial cushion. The rating also incorporates competitive pressures on its office properties.

MEC has been promoting investment in its core lease portfolio in the Marunouchi district as part of its long-term redevelopment project there. In addition to recently completed Marunouchi Building, a few of the projects will be operational in the next couple of years. In view of their competitiveness, Moody's expects these projects to make a steady cash flow contribution and enhance the overall quality of the company's portfolio in the district.

However, continuing sizable investments in the district's redevelopment projects will continue to constrain MEC's free-cash flow. Moreover, major new projects with substantial aggregate floor space will be supplied in central Tokyo over the next few years. MEC's existing properties in Marunouchi may be challenged by such competition. Nevertheless, Moody's expects that MEC will be able to manage its earnings in a reasonable range.

Mitsubishi Estate Co., Ltd., headquartered in Tokyo, is a leading property developer and operator in Japan, with total consolidated revenues of Yen 631 billion for the fiscal year ended March 2002.

Tokyo
Tomomichi Nagaoka
Senior Vice President
Rating Group
Moody's Japan K.K.
JOURNALISTS: (03) 5408-4110
SUBSCRIBERS: (03) 5408-4100

New York
John J. Kriz
Managing Director
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Copyright 2002 by Moody's Investors Service
99 Church Street, New York, NY 10007. All rights reserved.