On Oct. 31, 2006, Standard&Poor's Ratings Services placed its ratings on CB Richard Ellis Services Inc., including its 'BB+' long-term counterparty credit rating, on CreditWatch with negative implications. Standard&Poor's took this rating action in response to the company's announced acquisition of Trammel Crow Co. Although we believe that Trammel is a good strategic fit for CB Richard Ellis, the financing of the acquisition with debt will greatly increase debt leverage and reduce interest coverage. In addition, the transaction will result in substantial negative tangible equity, which becomes an issue given management's plans to continue Trammel's direct real estate investment operations. We will be meeting with the company to fully assess the acquisition and determine the final
