Fitch Affirms $383.5MM of Bering CDO I, Ltd.

CHICAGO -- Fitch affirms seven classes of notes issued by Bering CDO I, Ltd. (Bering I). These rating actions are the result of Fitch's review process and are effective immediately:

--$175,000,000 class A-1S1 notes at 'AAA';

--$93,000,000 class A-1S2 notes at 'AAA';

--$42,000,000 class A-1J notes at 'AAA';

--$40,000,000 class A-2 notes at 'AA';

--$14,000,000 class A-3 notes at 'A';

--$15,602,375 class B notes at 'BBB';

--$4,000,000 class C notes at 'BB'.

Bering I is a collateralized debt obligation (CDO) that closed Aug. 15, 2006 and is managed by Terwin Money Management, LLC. Bering I remains in its reinvestment period until October 2010. Included in this review, Fitch discussed the current state of the portfolio with the asset manager. Additionally, Fitch conducted cash flow modeling utilizing various default timing and interest rate scenarios to measure the breakeven default rates going forward relative to the minimum cumulative default rates required for the rated liabilities.

Fitch's rating actions reflect stable collateral performance since the deal's close. As of the Aug. 27, 2007 trustee report the Fitch Weighted Average Rating Factor (WARF) was 4.79 ('BBB'/'BBB-') as compared to 3.8 ('BBB'/'BBB-') as of the Oct. 31, 2006 report issued after the ramp-up completion. The current WARF value continues to meet its corresponding covenant of 5 ('BBB'/'BBB-'). Further, all of the coverage tests are currently above their corresponding trigger levels. As of the Sept. 7, 2007 distribution report, as the result of a reverse turbo feature in the interest waterfall, the class B notes have received $569,392 of principal amortization since the first payment date.

This rating analysis also incorporated Fitch's revised methodology for rating structured finance CDOs. For more information, see 'Global Criteria Change for U.S. Structured Finance CDOs Reflects Heightened Subprime Risks,' dated Aug. 15, 2007 and available on the Derivative Fitch web site at www.derivativefitch.com.

The ratings of the class A-1S1, A-1S2, A-1J, and A-2 notes address the likelihood that investors will receive full and timely payments of interest, as per the governing documents, as well as the stated balance of principal by the legal final maturity date. The ratings of the classes A-3, B and C notes address the likelihood that investors will receive ultimate and compensating interest payments, as per the governing documents, as well as the stated balance of principal by the legal final maturity date.

Fitch will continue to monitor and review this transaction for future rating adjustments. Additional deal information and historical data are available on the Derivative Fitch web site at www.derivativefitch.com. For more information on the Fitch VECTOR Model, see 'Global Rating Criteria for Collateralised Debt Obligations,' dated Oct. 18, 2006 and also available at www.derivativefitch.com.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.derivativefitch.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site. Fitch means Fitch, Inc., Fitch Ratings, Ltd. and their subsidiaries including Derivative Fitch, Inc. and Derivative Fitch Ltd. and any successor or successors thereto.