Fitch Affirms Lakeside CDO I, Ltd.

NEW YORK -- Fitch affirms three classes of notes issued by Lakeside CDO I, Ltd., (Lakeside). These affirmations are the result of Fitch's review process and the following rating actions are effective immediately:

--$380,363,773 class A-1 notes affirm at 'AAA/F1+';

--$152,000,000 class A-2 notes affirm at 'AAA';

--$8,101,530 class B notes affirm at 'BBB'.

Lakeside is a collateralized debt obligation (CDO) that closed Dec. 11, 2003 and is managed by Vanderbilt Capital Advisors, LLC (Vanderbilt). Lakeside is a static high grade CDO composed of high grade CDOs, residential mortgage-backed securities (RMBS) and commercial mortgage-backed securities (CMBS). Fitch discussed the current state of the portfolio with the asset manager and their portfolio management strategy going forward. In addition, Fitch conducted cash flow modeling utilizing various default timing and interest rate scenarios 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 collateral performance. Since the last rating action on June 16, 2006, the class A-1 notes have further delevered, which led to higher credit enhancement levels for all classes. The weighted average rating factor has remained at 0.54 as of the most recent trustee report dated July 31, 2007, and is passing its maximum covenant of 0.62. The overcollateralization (OC) test is currently at 103.06%. The interest coverage (IC) test is at 107.59%. Both of these tests meet their respective covenants of 100.25% and 100.00%.

The rating of the class A-1 and A-2 notes addresses 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 B 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 Collateralized Debt Obligations,' dated Oct. 18, 2006 and also available on Fitch's web site 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.