C-BASS CBO IV Rated 'AAA/AA/A-/BBB' By Fitch Ratings.

Business Editors

C-BASS CBO IV Ltd.'s and co-issuer C-BASS CBO IV Corp.'s (collectively referred to as the co-issuers) $215 million class A floating-rate notes are rated 'AAA' by Fitch Ratings. In addition, Fitch rates the $27 million class B-1 floating-rate notes and $15 million class B-2 fixed-rate notes 'AA', $5 million class C floating-rate notes 'A-', $3 million class D-1 floating-rate notes and $17 million class D-2 fixed-rate notes 'BBB'. The ratings on the class A notes and class B notes address the timely payment of interest and ultimate payment of principal, whereas the ratings on the class C and class D notes address 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. At closing, the quality of the collateral is evidenced by a current Fitch weighted average rating factor (WARF) of 19.59 ('BBB-') and the diversity of the collateral is evidenced by a current Fitch sector score of 6.30. Additionally, the ratings address the experience and capabilities of Credit-Based Asset Servicing and Securitization LLC (C-BASS) as the investment manager and Litton Loan Servicing as servicer of a substantial portion of the underlying collateral.

The proceeds of the notes will be used to purchase a static investment portfolio consisting primarily of approximately 72% of residential mortgage-backed securities (RMBS) (36% First Lien/ Alt A RMBS, 27% Subprime RMBS/High Loan to Value (HLTV), 9% Manufactured Housing), as well as approximately 28% in asset-backed securities. The notes have a legal final maturity of June 2032. Upon the breach of a coverage test as outlined in the indenture, the notes will start the process of paying down principal sequentially beginning with class A principal.

The investment manager, C-BASS, 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, respectively. C-BASS, which has been acquiring and managing mortgage assets since 1996, is a joint venture among Mortgage Guaranty Investment Corp. (MGIC) and Radian Group Inc. (Radian). These entities enjoy ratings from Fitch for insurer financial strength of 'AA+' and 'AA', respectively. Each of MGIC and Radian owns a 46% interest in the company with the remaining 8% owned by C-BASS management. MGIC is the largest private mortgage insurer in the U.S. with approximately $191 billion of insurance-in-force as of March 31, 2002 and a market capitalization of $7 billion as of June 26, 2002. Radian is the fourth largest private mortgage insurer in the U.S. with, as of March 31, 2002, approximately $111 billion of insurance-in-force and a market capitalization of $4.5 billion as of June 26, 2002. C-BASS's total capital has grown from less than $50 million in 1996 to its current $293 million as of April 30, 2002.

For more information, please refer to the presale report titled 'C-BASS CBO IV Ltd.', available on the Fitch Ratings web site at 'www.fitchratings.com'.