ACA ABS 2002-1 Limited Rated 'AAA/AA/BBB/BB' By Fitch Ratings.

Business Editors

NEW YORK--(BUSINESS WIRE)--July 30, 2002

ACA ABS 2002-1, Limited's and ACA ABS 2002-1 LLC.'s (together, the co-issuers), $305 million class A first priority senior secured floating-rate notes are rated 'AAA' by Fitch Ratings. In addition, Fitch rates the $64 million class B second priority senior secured floating-rate notes 'AA', $16.5 million class C mezzanine secured floating-rate notes 'BBB' and 18,000 preference shares ($18 million aggregate liquidation preference) 'BB'. The ratings on the class A and B notes address the timely payment of interest and ultimate repayment of principal. The rating on the class C notes addresses the ultimate payment of interest and principal; the rating on the preference shares addresses the ultimate payment of principal.

The ratings are based upon the capital structure of the transaction, the quality of the collateral, the overcollateralization and interest coverage provided for within the indenture, and the experience of ACA Management LLC (ACA) as the collateral manager.

The proceeds of the notes will be used to purchase a diversified investment portfolio consisting primarily of residential mortgage-backed securities (RMBS), asset-backed securities (ABS), commercial mortgage-backed securities (CMBS), collateralized debt obligations CDOs. The reinvestment period will end no later than three years after the deal closing date. The class A notes have a stated maturity of Aug. 1, 2034 and the class B and C notes have a stated maturity of Aug. 1, 2037. Upon completion of the reinvestment period or the breach of a coverage test as outlined in the indenture, the notes will begin receiving principal repayment, sequentially starting with the Class A.

The collateral manager will purchase and sell all investments for the portfolio on behalf of the co-issuers. ACA ABS 2002-1, Ltd. is a special purpose company, incorporated under the laws of the Cayman Islands. ACA ABS 2002-1 LLC is a special purpose company, incorporated under the laws of the State of Delaware. ACA will manage the portfolio in accordance with specific investment restrictions as outlined in the indenture.

ACA Management LLC is a NY-based asset manager, formed in May 2001. It is a wholly owned subsidiary of ACA Risk Solutions, LLC, and the holding company of American Capital Access Holdings, Inc. which in turn is wholly-owned by ACA Holdings. ACA has a staff of approximately 75 professionals and currently manages $2 billion of corporate credits through two synthetic CDOs.