Moody’s reviews Restay Hotels TMK deal for possible downgrade

Approximately JPY 2.2 billion in a mezzanine specified loan and a 
specified bond affected

Tokyo, June 22, 2009 -- Moody's Investors Service has placed under review 
for possible downgrade the ratings of Restay Hotels Tokutei Mokuteki 
Kaisha's Mezzanine Specified Loan and Specified Bond. Final maturity will 
take place in May 2014.

Mezzanine Specified Loan, Baa1 placed under review for possible
downgrade; previously, Baa1 assigned on May 18, 2007

Specified Bond, Baa1 placed under review for possible downgrade;
previously, Baa1 assigned on May 18, 2007

This transaction is backed by 19 leisure hotels, which are operated by 
Restay Co., Ltd. and are located all over Japan. The deal features a 
scheduled amortization and an operator replacement trigger if the 
operator's performance declines below a certain level.

The rating action reflects Moody's view regarding the uncertainty of the
leisure hotels' performance, given that the assets have underperformed
our expectation in light of the ratings assigned to the Mezzanine 
Specified Loan and Specified Bond.

As consumer spending continues to weaken, leisure hotels are facing
declines in 1) revenue per customer, 2) the length of stay, and 3) the 
number of customers, etc. In Moody's view, the performance of the 
operator in this transaction is better than the market average, but its 
profitability will be negatively affected by the ongoing recession, as 
will that of the industry overall.

In its review, Moody's will examine the operator's measures to improve 
the profitability of the hotels in light of the difficult business
environment.

The principal methodology used in rating the transaction was "Moody's
Approach to Rating Japanese Whole Business Securitizations" (April 2007), 
which can be found at www.moodys.com in the Credit Policy & 
Methodologies directory, in the Ratings Methodologies subdirectory.

Other methodologies and factors that may have been considered in the 
process of rating this issue can also be found in the Credit Policy & 
Methodologies directory.

Moody's Investors Service is a publisher of rating opinions and research.
It is not involved in the offering or sale of any securities, nor is it 
acting on behalf of the offering party. This release is not a 
solicitation or a recommendation to buy, hold or sell securities.