Fitch Affirms 7 Classes of Jupiter High-Grade CDO III, Ltd.

CHICAGO -- Fitch affirms seven classes of notes issued by Jupiter High-Grade CDO III, Ltd. and Jupiter High-Grade CDO III, Inc. (Jupiter High Grade III). These affirmations are the result of Fitch's review process. The following rating actions are effective immediately:

--$1,272,537,684 Class A-1 NV notes affirmed at 'AAA';

--$244,766 Class A-1 VA notes affirmed at 'AAA';

--$391,625,369 Class A-1 VB notes affirmed at 'AAA';

--$78,325,074 Class A-2A notes affirmed at 'AAA';

--$68,450,000 Class A-2B notes affirmed at 'AAA';

--$88,115,708 Class B notes affirmed at 'AA';

--$42,099,727 Class C notes affirmed at 'BBB'.

Jupiter High Grade III is a collateralized debt obligation (CDO) that closed Aug. 10, 2005 and is managed by Harding Advisory LLC (Harding Advisory). Jupiter High Grade III is supported by a portfolio composed of asset-backed securities (ABS), synthetic structures, and collateralized debt obligations (CDOs). Jupiter High Grade III remains in the substitution period until September 2007.

These affirmations are the result of stable collateral coverage and credit quality. Since the last rating action in March 2006, the Fitch weighted average rating factor (WARF) and overcollateralization (OC) ratios have remained stable. The WARF of the collateral was reported at 0.9 ('AA'/'AA-'), the Class A/B and Class C OC ratios were at 103.07% and 100.84% respectively, as of the trustee report dated April 30, 2007. All of the above metrics continue to meet their corresponding covenants.

The ratings of the Class A-1 NV, A-1 VA, A-1 VB, A-2A, A-2B, and B 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 C notes address the likelihood that investors will receive ultimate interest payments, as per the governing documents, as well as the 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 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.