Fitch Affirms 6 classes of Independence IV CDO, Ltd.

CHICAGO -- Fitch affirms six classes of floating-rate notes issued by Independence IV CDO, Ltd, (Independence IV). These rating actions are the result of Fitch's review process and are effective immediately:

--$85,318,726 class A-1 (Series 1) affirmed at 'AAA';

--$79,725,042 class A-1 (Series 2) affirmed at 'AAA';

--$29,968,808 class A-2 affirmed at 'AAA';

--$28,470,368 class A-3 affirmed at 'AAA';

--$29,968,808 class B affirmed at 'AA';

--$24,587,814 class C affirmed at 'BBB'.

Independence IV is a cash collateralized debt obligation (CDO) managed by Declaration Management and Research LLC which closed June 26, 2003. The portfolio is composed of residential mortgage backed securities (RMBS), asset-backed securities (ABS), commercial mortgage-backed securities (CMBS), real estate investment trusts (REITs), and CDOs. Included in this review, Fitch discussed the current state of the portfolio with the asset manager and conducted cash flow modeling for various default timing, interest rate scenarios, and prepayment assumptions to measure the breakeven default rates going forward relative to the minimum cumulative default rates required for the rated liabilities.

The credit quality of the collateral has remained stable. Credit enhancement levels have improved from the last review as a result of the delevering of the transaction and the roughly $10,000,000 in overcollateralization to the rated notes.

The ratings of the class A-1 (series 1), A-1 (series 2), A-2, A-3, and B notes address the likelihood that investors will receive timely payment of interest and ultimate payment of principal, as per the governing documents. The ratings of the class C notes address the likelihood that investors will receive ultimate payment of interest and ultimate payment of principal, as per 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 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 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.