Fitch Affirms JER CRE CDO 2005-1 Ltd./LLC.

NEW YORK -- Fitch has affirmed eight classes of notes issued by JER CRE CDO 2005-1, Ltd. and JER CRE CDO 2005-1 LLC (JER CDO 2005-1; collectively the co-issuers) as follows:

--$81,725,000 class A floating-rate notes 'AAA';

--$38,130,000 class B-1 fixed-rate notes 'AA';

--$37,500,000 class B-2 floating-rate notes 'AA';

--$48,400,000 class C fixed-rate deferrable interest notes 'A';

--$46,500,000 class D fixed-rate deferrable interest notes 'BBB';

--$23,320,000 class E fixed-rate deferrable interest notes 'BBB-';

--$15,000,000 class F fixed-rate deferrable interest notes 'BB';

--$10,000,000 class G fixed-rate deferrable interest notes 'B'.

JER CDO 2005-1 is a collateralized debt obligation (CDO) that closed Nov. 10, 2005 and is managed by JER Investors Trust, Inc., a subsidiary of J.E. Robert Company, Inc. JER CDO 2005-1 has a portfolio composed of approximately 97% commercial mortgage-backed securities (CMBS) and 3% real estate collateralized debt obligations (CDOs). This is a static transaction; however, the collateral advisor will have the ability to sell impaired or credit-risk securities at any time.

These affirmations are due to the stable performance of the collateral since close. The weighted average rating factor (WARF) has remained stable at 19.88 ('BB-/B+'), as of the most recent trustee report dated Dec. 19, 2006. The A/B, C, and D/E overcollateralization (OC) ratios have remained stable at 266.12%, 203.52%, and 151.95% respectively. Furthermore, there have been no redemptions or defaults to date.

The ratings for classes A, B-1 and B-2 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 on the class C, D, E, F and G 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 is 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.