Fitch Affirms One & Downgrades One Class from Mid Ocean CBO 2000-1.

CHICAGO -- Fitch Ratings has affirmed one class and downgraded one class of notes issued by Mid Ocean CBO 2000-1 Ltd. The following rating actions are effective immediately:

-- $196,111,511 class A-1L notes affirmed at 'BB';

-- $16,500,000 class A-2 notes to 'CCC' from 'B-';

-- $15,000,000 class A-2L notes to 'CCC' from 'B-';

-- $12,500,000 class B-1 notes remain at 'C'.

Mid Ocean CBO 2000-1 Ltd. (Mid Ocean) is a collateralized debt obligation (CDO) managed by Deerfield Capital Management that closed Jan. 8, 2001. Mid Ocean is composed of residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), asset-backed securities (ABS) and CDOs. On Jan. 2, 2006, Mid Ocean officially ended its five-year revolving period as required in the transaction's indenture.

Since the last rating action on June 7, 2005, the collateral has continued to experience downgrades of several assets. As of the Jan. 3, 2006 payment date report the weighted average rating factor (WARF) increased to 33 ('BBB-/BB+') from 30 ('BBB-/BB+') versus a test level of 16 ('BBB/BBB-') reflecting overall negative credit migration. The Class A and Class B overcollateralization (OC) ratios and the interest coverage (IC) ratio are well below their required test levels. The class A OC ratio decreased to 101.1% from 102.8% versus a test trigger of 105%. The class B OC ratio decreased to 95.5% from 97.6% versus a test trigger of 101%. The IC ratio decreased to 109.6% from 116.2% versus a test trigger of 122%. As a result of its analysis, Fitch anticipates that class A-2 and A-2L noteholders will continue to experience an impairment of principal and interest over the remaining life of the transaction.

Fitch will continue to monitor and review this transaction for future rating adjustments. Additional deal information and historical data are available on the Fitch Ratings web site at 'www.fitchratings.com'. For more information on the Fitch VECTOR Model, see 'Global Rating Criteria for Collateralised Debt Obligations', dated Sept. 13, 2004 and also available at 'www.fitchratings.com'.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, 'www.fitchratings.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.