Bluegrass ABS CDO I Ltd. Rated 'AAA/AA/BBB' by Fitch Ratings.

Business Editors

NEW YORK--(BUSINESS WIRE)--July 28, 2003

Fitch has rated the following notes issued by Bluegrass ABS CDO I, Ltd. and co-issuer Bluegrass ABS CDO I LLC (collectively referred to as the co-issuers):

-- $125,000,000 class A-1 (series 1) first priority senior

secured floating-rate notes 'AAA';

-- $125,000,000 class A-1 (series 2) first priority senior

secured floating-rate notes 'AAA';

-- $70,000,000 class A-2 second priority senior secured

floating-rate notes 'AAA';

-- $42,500,000 class B third priority senior secured

floating-rate notes 'AA';

-- $21,500,000 class C mezzanine secured floating-rate notes

'BBB'.

The ratings on the class A-1 (series 1), A-1 (series 2), A-2 and B notes address the timely payment of interest and ultimate payment of principal. The rating on the class C notes addresses the ultimate payment of interest and principal.

The ratings are based upon the capital structure of the transaction, the quality of the collateral, and the overcollateralization and interest coverage tests provided for within the indenture. The ratings also address the experience and capabilities of INVESCO Institutional (N.A.), Inc. as the collateral manager. The transaction structure includes an additional collateral purchase test, which upon failure will allow the collateral manager to reinvest excess spread during the substitution period. The structure also includes an equity cap set at 16%.

The proceeds of the notes will be used to purchase an investment portfolio consisting of approximately 65% residential mortgage-backed securities (RMBS), 18% asset-backed securities (ABS), 10% commercial mortgage-backed securities (CMBS), and 7% collateralized debt obligations (CDOs).

The collateral manager, INVESCO Institutional (N.A.), Inc., will purchase all investments for the portfolio on behalf of the co-issuers, which are special purpose companies incorporated under the laws of the Cayman Islands and Delaware. Invesco has an $86 billion global fixed income book, with supervision headquartered in Louisville, KY. As of March 31, 2003, Invesco had $18.1 billion of structured products assets under management (AUM). Of this total amount, $10.5 billion was held in ABS, $5.5 billion in RMBS and $2.1 billion in CMBS.

For more information, please refer to the presale report titled, 'Bluegrass ABS CDO I, Ltd.', available on the Fitch Ratings web site at 'www.fitchratings.com'.