Fitch Affirms 1 and Upgrades 4 Classes of C-BASS CBO VI, Ltd.

NEW YORK -- Fitch Ratings affirms one and upgrades four classes of notes issued by C-BASS CBO VI, Ltd., (C-BASS VI) as follows:

-- $158,237,260 class A notes affirmed at 'AAA';

-- $31,902,673 class B notes upgraded to 'AAA' from 'AA+';

-- $5,000,000 class C notes upgraded to 'AA' from 'AA-';

-- $23,418,891 class D notes upgraded to 'A+' from 'BBB+'

-- $3,000,000 class E notes upgraded to 'BBB+' from 'BBB-'.

C-BASS VI is a static-pool asset-backed collateralized debt obligation (CDO) managed by Credit-Based Servicing and Securitization LLC (C-BASS) which closed April 15, 2003. C-BASS is rated 'CAM1' by Fitch for managing structured finance CDOs. Included in the review of C-Bass VI, 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.

The upgrades are due primarily to the increased credit enhancement available to support the notes due to the normal amortization of the class A and B notes, as well as the scheduled principal payments to the class D notes via an accelerated amortization feature of the interest waterfall. As of the most recent trustee report dated Feb. 28, 2006, 63.8% of the class A-1 notes and 75.5% of the class D notes remained outstanding.

Since the last review in December 2004, deleveraging has resulted in increased overcollateralization (OC) ratios as evidenced by the class A/B and D OC tests increasing to 127.9% and 111.3% from 122.1% and 108.4%, respectively, relative to triggers of 113.8% and 102.8%, respectively. The interest coverage (IC) tests have declined during this same period. The A/B IC test has decreased to 142.1% from 161.6%, but still retains a significant cushion above its 109% trigger.

Since Fitch's last review, the collateral has continued to perform well. The weighted average rating factor (WARF) has improved to 12 in the Feb. 28, 2006 report from 13.6 at the time of last review, remaining in the 'BBB+/BBB' range.

The ratings on the class A and B notes address the timely payment of interest and ultimate payment of principal as outlined in the governing documents. The ratings on the class C, D and E notes address the ultimate payment of interest and principal as outlined in the governing documents.

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 Collateralised Debt Obligations,' dated Sept. 13, 2004 and also available at www.fitchratings.com.)

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.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.