Fitch Affirms All Tranches of ELC -Cayman- Ltd. 1999-II.

NEW YORK -- Fitch Ratings affirms all tranches of ELC (Cayman) Ltd. 1999-II as follows:

--$118,014,993 class A-1 notes affirmed at 'AAA';

--$202,011,429 class A-2 notes affirmed at 'AAA';

--$36,750,000 class A-3 notes affirmed at 'AAA';

--$11,250,000 class A-4 notes affirmed at 'AAA';

--$11,000,000 class B-1 notes affirmed at 'A-';

--$11,000,000 class B-2 notes affirmed at 'A-';

--$19,000,000 class C-1 notes affirmed at 'BB-';

--$25,000,000 class C-2 notes affirmed at 'BB-';

--$3,100,000 class D-1 notes affirmed at 'CCC';

--$13,675,000 class D-2 notes affirmed at 'CCC';

--$25,250,000 class E notes affirmed at 'CC';

--$25,250,000 preferred shares affirmed at 'C'.

ELC (Cayman) Ltd. 1999-II is a collateralized debt obligation (CDO) managed by Babson Capital Management LLC. The CDO was established in August, 1999, to issue $562 million in debt and preference shares. Payments are made semi-annual in March and September and the reinvestment period ends in September, 2004. In conjunction with the review, Fitch Ratings discussed the current state of the portfolio with the asset manager and their portfolio management strategy. In addition, Fitch Ratings conducted cash flow modeling utilizing various default timing and interest rate scenarios.

Fitch Ratings has reviewed the credit quality of the individual assets comprising the portfolio. Since Fitch's last rating action in September, 2002, the portfolio has experienced stable performance and minimal change to the weighted average rating factor (WARF). The portfolio has remained stable along with a reduction in impaired and defaulted assets within the portfolio. Accordingly, as a result of our analysis, Fitch has determined that the current ratings assigned to all rated notes reflect the current risk to noteholders.

The ratings assigned to the class A, B, C and D notes address the timely payment of interest and ultimate payment of principal. The ratings assigned to the class E and preference shares addresses the ultimate receipt of the stated principal amount by the final maturity date.

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'.