C-BASS CBO VII Ltd. Rated 'AAA/AA/A/BBB' by Fitch Ratings.

Business Editors

NEW YORK--(BUSINESS WIRE)--July 30, 2003

Fitch has rated the following notes issued by C-BASS CBO VII Ltd. and co-issuer C-BASS CBO VII Corp. (collectively referred to as the co-issuers):

-- $300,000,000 class A first priority senior secured

floating-rate notes due 2028 'AAA';

-- 20,000,000 class B second priority senior secured floating-rate

notes due 2038 'AA';

-- $20,000,000 class C third priority secured floating-rate

deferrable interest notes due 2038 'A';

-- $27,000,000 class D fourth priority secured floating-rate

deferrable interest notes due 2038 'BBB'.

The ratings on the class A and B notes address the timely payment of interest and ultimate payment of principal. The ratings on the class C and 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. A notable feature of the structure includes the use of excess interest to prepay principal on the class D notes according to a fixed schedule during the first five years of the transaction. The structure also includes a ramp-up period to purchase approximately $7 million of identified securities.

At closing, the quality of the collateral is evidenced by a current Fitch weighted average rating factor (WARF) of 14.05 ('BBB/BBB-') and the diversity of the collateral is evidenced by a current Fitch sector score of 5.9. 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 an investment portfolio consisting of approximately 74% residential mortgage-backed securities (RMBS), 18% asset-backed securities (ABS), 4 % corporate insurance securities, and 4 % collateralized debt obligations (CDOs).

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 have insurer financial strength ratings from Fitch 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 $196 billion of insurance-in-force as of March 31, 2003, and a market capitalization of $4.2 billion as of May 31, 2003. Radian is the third largest private mortgage insurer in the U.S. with, as of March 31, 2003, approximately $119 billion of insurance-in-force, and a market capitalization of $3.4 billion as of May 31, 2003. C-BASS's total capital has grown from less than $50 million in 1996 to its current $404 million as of April 30, 2003.

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