Fitch Affirms PIMCO's Investment Grade Corporate CDO Asset Manager Rating at 'CAM1-'.

NEW YORK -- Fitch has affirmed PIMCO's 'CAM1-' investment grade corporate collateralized debt obligation (CDO) asset manager rating.

PIMCO's rating can be attributed to the depth and experience of its investment grade portfolio managers, seasoned global fundamental research staff, significant market access, strong internal control environment, and commitment to consistent and ongoing asset surveillance and CDO administration. Further, PIMCO's allocation of additional resources to their CDO platform, specifically the hiring of additional staff in their client servicing area, highlights PIMCO's attention to growing their CDO business.

PIMCO's 'CAM1-' rating is based on the firm's composite score which represents a weighted average based on the scores assigned for each group of criteria factors summarized below. This composite score is used to establish a systematically applied quantitative link between its asset manager rating and Fitch's CDO rating criteria, in accordance with the approach outlined in the Fitch report 'Reviewing and Rating CDO Asset managers' dated Jan. 2, 2007, available on the Derivative Fitch web site at www.derivativefitch.com.

--Company and Management Experience '1';

--Staffing '1';

--Procedures and Controls '1-';

--Portfolio Management '1';

--CDO Administration '2';

--Technology '1-';

--CDO Portfolio Performance '2+'.

Pacific Investment Management Company (PIMCO) is headquartered in Newport Beach, California, and was founded in 1971. PIMCO has been managing dedicated structured credit portfolios since 1993 and as of Sept. 30, 2006, managed $29.3 billion of structured credit through their global structured credit platform. Of their structured credit portfolio, CDOs account for approximately $6.6 billion. PIMCO has sourced collateral for 40 deals across six asset classes since their entree into CDO management in 1996.

PIMCO is the collateral manager for five outstanding investment grade CDOs - Balboa CDO I, Ltd., San Miguel CDO, Ltd., Morro Bay CDO, Ltd., Oslo CDO and HBOS CDO.

An updated profile report and full CAM rating report on PIMCO will be available on the Derivative Fitch web site.

Fitch rates CDO asset managers by asset class, on a scale of 1 to 5, with 1 being the highest rating. The rating scale includes plus ('+') and minus ('-') designations, along with flat ratings. These ratings are based on a standardized scorecard methodology that includes factors in each of the seven groups as noted above.

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.