Fitch Affirms 6 Classes of G-Star 2005-5 Ltd./Corp.

CHICAGO -- Fitch has affirmed six classes of notes issued by G-Star 2005-5 Ltd. and co-issuer G-Star 2005-5 (Delaware) Corp. (collectively G-Star 2005-5). These affirmations are the result of Fitch's review process and are effective immediately:

--$423,000,000 class A-1 notes affirmed at 'AAA';

--$60,000,000 class A-2 notes affirmed at 'AAA';

--$37,000,000 class A-3 notes affirmed at 'AA';

--$21,000,000 class B notes affirmed at 'A-';

--$24,000,000 class C notes affirmed at 'BBB';

--$35,000,000 income notes affirmed at 'BB'.

G-Star 2005-5 is a revolving collateralized debt obligation (CDO) that closed March 16, 2005. G-Star 2005-5 is managed by Capmark Investments LP (CDO asset manager rating of 'CAM1' for commercial real estate assets by Fitch). The portfolio is currently composed of residential mortgage-backed securities (RMBS) (63.9%), commercial mortgage-backed securities (CMBS) (28.2%), CDOs (6.3%), and commercial asset-backed securities (1.6%). During the four-year interest-only period, Capmark may trade up to 10% of the total portfolio balance annually on a discretionary basis. G-Star 2005-5 will exit its reinvestment period in March 2009.

The affirmations are the result of stable portfolio performance measures, such as overcollateralization (OC) ratios and weighted average rating factor (WARF). As of the most recent trustee report dated March 29, 2007 all overcollateralization and interest coverage ratios have remained stable and continue to pass their covenants. Since Fitch's last review, the WARF improved to 4.7 ('BBB'/'BBB-') from 6.6 ('BBB'/'BBB-'). There are no defaulted assets in the portfolio.

While G-Star 2005-5 has a large exposure to subprime RMBS (58.3%), the portfolio has limited exposure to the 2006 vintage (1.9%). The current portfolio exposure to 2004 and 2005 vintages is 31.2% and 20.3%, respectively. Over 85% of the RMBS exposure is to bonds in the mezzanine part of the RMBS capital structure. However, G-Star 2005-5 has very little exposure to subprime RMBS assets rated 'BBB-' and below (1.2%). Fitch continues to closely monitor this transaction.

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 ratings of the class A-1, A-2, and A-3 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 class 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. The rating of the preferred shares addresses the likelihood that investors will receive their 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. 4, 2006 and also available on Fitch's web site 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.