Fitch Affirms 6 Tranches of Connecticut Valley Structured Credit CDO I, Ltd.

NEW YORK -- Fitch Ratings affirms six tranches of Connecticut Valley Structured Credit CDO I, Ltd.

-- $296,000,000 class A notes at 'AAA';

-- $17,000,000 class B-1 notes at 'A-';

-- $3,000,000 class B-2 notes at 'A-';

-- $13,000,000 class C-1 notes at 'BBB';

-- $39,000,000 class C-2 notes at 'BBB';

-- $32,000,000 preference shares at 'BB'.

Connecticut Valley Structured Credit CDO I, Ltd. is a collateralized debt obligation (CDO) managed by Babson Capital Management, LLC. The CDO was established on Sept. 25, 2001 to issue $400 million in debt and preference shares. Payments are made semi-annually in March and September, and the reinvestment period ends in September 2006. In conjunction with the review, Fitch discussed the current state of the portfolio with the asset manager and their portfolio management strategy.

Overall, the portfolio has experienced relatively stable performance, along with minimal negative ratings migration to its weighted average rating factor (WARF). Currently, as stated in the monthly trustee report dated Sept. 19, 2005, all par and interest coverage tests are passing. There are currently two assets deferring interest, representing 1.26% of the total portfolio. One of these assets, scheduled to be reclassified as performing in the near future, has recently recouped its outstanding deferred interest amount in addition to paying its current coupon. This asset's inclusion in the total performing pool stands to benefit noteholders in the form of higher overcollateralization.

The other deferred interest asset has recently resumed paying its coupon. The portfolio currently has no defaulted assets and 'CCC+' or lower rated assets represent 2.00% of total collateral. Preference share performance has remained strong with those noteholders receiving distributions to date of $12,793,575, leaving a rated balance of $19,206,425 remaining from an original issue amount of $32,000,000. As a result of its analysis, Fitch has determined that the current ratings assigned to the classes A, B-1, B-2, C-1, C-2, and preference shares reflect the current risk to noteholders.

The ratings assigned to the classes A, B, and C notes address the timely payment of interest and ultimate payment of principal. The rating assigned to the preference shares addresses the ultimate payment of principal.

Fitch will continue to monitor and review this transaction for future rating adjustments as needed. Additional deal information and historical data are available on the Fitch Ratings web site 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.