Fitch Affirms Ischus CDO II Ltd.

CHICAGO -- Fitch affirms all classes of notes issued by Ischus CDO II Ltd. These affirmations are the result of Fitch's review process and are effective immediately:

--$214,000,000 Class A-1A notes at 'AAA';

--$50,000,000 class A-1B notes at 'AAA';

--$28,000,000 class A-2 notes at 'AAA';

--$55,000,000 class B notes at 'AA';

--$11,000,000 class C notes at 'A';

--$18,000,000 class D notes at 'BBB'.

Ischus CDO II Ltd. is a cash collateralized debt obligation (CDO) managed by Ischus Capital Management, LLC which closed July 27, 2005. The portfolio comprises ABS (asset backed securities) and CDOs.

The performance of this transaction has been stable. The overcollateralization, interest coverage, weighted average life, weighted average coupon, weighted average spread, and weighted average fitch rating factor tests are all passing the established covenants.

The ratings of the classes A-1A, A-1B, A-2, 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 classes C and D notes address the likelihood that investors will receive ultimate and compensating 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.