Fitch Affirms GSC ABS CDO 2005-1, Ltd./Corp.

CHICAGO -- Fitch affirms all classes of notes issued by GSC ABS CDO 2005-1, Ltd. and GSC ABS CDO 2005-1, Corp. (GSC ABS CDO 2005-1). The following rating actions are effective immediately:

--$140,000,000 class A1S senior secured floating-rate notes due 2045 affirmed at 'AAA';

--$56,000,000 class A1J senior secured floating-rate notes due 2045 affirmed at 'AAA';

--$48,000,000 class A2 senior secured floating-rate notes due 2045 affirmed at 'AA';

--$26,000,000 class A3 secured deferrable interest floating-rate notes due 2045 affirmed at 'A';

--$20,000,000 class B mezzanine secured deferrable interest floating-rate notes due 2045 affirmed at 'BBB'.

GSC ABS CDO 2005-1 is a synthetic deal, managed by GSC Partners (NJ), L.P. (GSCP). GSCP is rated 'CAM2' by Fitch for managing structured finance CDOs. The capital structure of the deal includes $185 million unfunded senior swap and $315 million of the funded notes. The deal gains all of its exposure to structured finance assets synthetically, via a credit default swap. The proceeds from the sale of funded notes were invested in guaranteed investment contract (GIC) which will cover credit event and floating amount event losses. The manager has the ability to effect discretionary trading up to 15% of the portfolio per annum during the four-year reinvestment period, including entering short positions as a protection buyer. The total notional of the current short positions is $22 million and represents related (to long positions referencing the same security) short synthetic securities.

As of Nov. 6, 2006 trustee report, the portfolio was comprised of 90.3% residential mortgage backed securities (RMBS), 3.4% commercial mortgage backed securities (CMBS), and 6.3% collateralized debt obligations (CDO). Fitch 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.

These affirmations are the result of stable portfolio quality. Fitch weighted average rating factor (WARF), at 4.9, has not changed since the effective date April 6, 2006. Weighted average premium slightly improved to 204 basis points from 198 basis points. Class A-2, A-3, and B overcollateralization (OC ratios) have stayed at the same respective levels.

The ratings of the class A1S, A1J, and A2 notes address the likelihood that investors will receive full and timely payments of interest, as per the governing documents, as well as the aggregate principal amount by the stated maturity date. The ratings of the class A3 and class B notes address the likelihood that investors will receive ultimate and compensating interest payments, as per the governing documents, as well as the aggregate principal amount by the stated 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 Collateralized 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.