Fitch Affirms 1 & Downgrades 1 Class of CHYPS CBO 1999-1, Ltd.

CHICAGO -- Fitch Ratings has affirmed one and downgraded one class of notes issued by CHYPS CBO 1999-1, Ltd. The following rating actions are effective immediately:

-- $66,589,714 class A-2 affirmed at 'AAA';

-- $55,851,485 class A-3 downgraded to 'CC' from 'CCC';

-- $13,000,000 class B-1 remains at 'C';

-- $18,000,000 class B-2 remains at 'C'.

CHYPS CBO 1999-1, Ltd. (CHYPS 1999-1) is a collateralized bond obligation (CBO) managed by Delaware Investment Advisors which closed Jan. 7, 1999. The collateral supporting CHYPS 1999-1 is composed of predominantly high yield bonds. CHYPS CBO is in its amortization period, whereby trading is restricted to the sale of defaulted and credit risk/credit improved securities. The class A-2 notes are insured for interest and principal by Financial Security Assurance Inc. (FSA), currently rated 'AAA' by Fitch. Included in this review, Fitch discussed the current state of the portfolio with the asset manager. In addition, Fitch conducted cash flow modeling utilizing various default timing and interest rate scenarios.

Since the last rating action on March 10, 2004, the collateral has continued to deteriorate. The weighted average rating has decreased to approximately 'CCC-' from 'CCC', which includes defaulted assets representing approximately 30.6% of the $99.5 million of total collateral.

The class A overcollateralization (OC) ratio has decreased to 57.5% as of the most recent trustee report (dated March 2, 2005) from 75.6% as of Feb. 2, 2004. As a result of the OC test failure, any excess interest after paying the class A-3 notes is applied to redeem the senior notes. On the last payment date, approximately $2.5 million of interest proceeds was applied to redeem senior notes. While the class A-3 notes are anticipated to receive future payments through the interest waterfall, it is unlikely that these notes will receive any payments, other than interest shortfall payments, through the principal waterfall.

As a result of this analysis, Fitch has determined that the 'CCC' ratings assigned to the Class A-3 notes no longer reflect the current risk to noteholders. The class B notes are not expected to receive any future cash flow.

Fitch will continue to monitor and review this transaction for future rating adjustments. Additional deal information and historical data are available on the Fitch Ratings web site at 'www.fitchratings.com'. For more information on the Fitch VECTOR Model, see 'Global Rating Criteria for Collateralized Debt Obligations,' dated Sept. 13, 2004, also available at 'www.fitchratings.com'.