Fitch Affirms One Tranche of CHYPS CBO 1997-1 LTD.

NEW YORK -- Fitch Ratings affirms one tranche of CHYPS CBO 1997-1 LTD as follows:

-- $101,247,090 class A-2 notes affirmed at 'CCC'.

Additionally:

-- $ 57,100,000 class A-3 notes remain at 'CC';

-- $ 42,400,000 class B notes remain at 'C'.

CHYPS CBO 1997-1 LTD (CHYPS) is a collateralized debt obligation (CDO) managed by Delaware Investment Advisors, Inc. The CDO was established in December 1997 to issue approximately $322 million in notes and income notes. Payments are made semi-annual, and the reinvestment period ended in January 2003. In conjunction with the review, Fitch discussed the current state of the portfolio with the asset manager and their portfolio management strategy, considering the reinvestment period has ended.

Fitch reviewed the credit quality of the individual assets constituting the portfolio. Since Fitch's last rating action in October 2002, the portfolio continues to experience negative performance through impaired and defaulted assets, along with a negative change to the weighted average rating factor. The class A-1 notes have paid in full, while the class A-2 notes have paid down nearly 30% of its original note balance and all tranches are receiving current interest. Accordingly, as a result of our analysis, Fitch has determined that the assigned ratings to all rated notes reflect the current risk to noteholders.

The ratings of the class A-2 and A-3 notes address the timely payment of interest and the ultimate payment of principal. The ratings assigned to the class B notes address the ultimate receipt of interest and the stated principal amount by the final maturity date.

Fitch will continue to monitor and review this transaction for future rating adjustments as needed. Additional deal information and historical data are available on the Fitch Ratings web site at 'www.fitchratings.com'.