Morgan Stanley&Co. Inc. Trust's floater certificates, series 2004-1267, relating to California Educational Facilities Authority 5.00% revenue bonds (University of Southern California), series 2003C, is rated 'AA+/A-1'. The long-term component of the rating is based on the 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. Morgan Stanley&Co. Inc. Trust's residual certificates, series 2004-1267, relating to California Educational Facilities Authority 5.00% revenue bonds (University of Southern California), series 2003C, is rated 'AA+'. The rating is based on the underlying bond.