Standard&Poor's Ratings Services assigned its 'AAA/A-1' rating to Morgan Stanley&Co. Inc. Trust's floater certificates, series 2004-1281, relating to the City of Austin, Texas's (Travis and Williamson Counties) series 2005A water and wastewater system revenue refunding bonds. The long-term component of the rating is based on the Ambac-insured underlying bond. The short-term component of the rating is based on a guarantee provided by Morgan Stanley and liquidity facility provided by Morgan Stanley Municipal Funding Inc. until May 22, 2007. In addition, Standard&Poor's assigned its 'AAA' rating to Morgan Stanley&Co. Inc. Trust's residual certificates, series 2004-1281, relating to Austin's series 2005A water and wastewater system revenue refunding bonds. The rating is based on the
