Fitch Affirms PPM America's Leveraged Loan CDO Asset Manager Rating of 'CAM 1-'.

CHICAGO -- Derivative Fitch has affirmed its 'CAM1-' leveraged loan CDO asset manager rating of PPM America Inc. (PPMA). PPMA's 2006 CAM rating was re-scaled to match 2007 criteria prior to Fitch's annual review and CAM rating update.

The rating affirmation is based on PPMA's disciplined portfolio management process, its well documented and organized CDO procedures and controls, and the firm's experienced portfolio management team. The rating affirmation also reflects PPMA's strong synthetic CLO performance track record.

PPMA's leveraged loan team currently manages five deals collateralized by bank loans, with $2.01 billion in assets. The five CLOs consist of the following:

--$350 million PPM Riviera Loan Fund;

--$412 million PPM Grayhawk CLO;

--$450 million SERVES, series 2001-6;

--$300 million SERVES, series 2004-1;

--$500 million SERVES, series 2006-1.

PPMA has also managed two redeemed transactions: $600 million SERVES, series 1999-5 synthetic CLO and the 20% loan component of the $900 million Tuscany cash flow CDO.

PPMA'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 '1-';

--Technology '1-';

--CDO Portfolio Performance '2+'.

PPMA is an indirect wholly-owned subsidiary of Prudential Plc, a company incorporated in the United Kingdom (UK Parent). PPMA's UK Parent has been in existence for over 150 years and, with its affiliated companies, constitutes one of the world's leading financial services groups, providing insurance and financial services throughout the world. PPMA's UK Parent is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America. PPMA was founded in 1990 and (with its affiliate PPM Finance, Inc.) managed approximately $79.1 billion assets as of Sept. 30, 2007.

PPMA is headquartered in Chicago and it (with its affiliate PPM Finance, Inc.) has approximately 200 employees, including more than 100 investment professionals as of Sept. 30, 2007. PPMA is a registered investment advisor and manages assets for insurance affiliates, including Jackson National Life Insurance Company. PPMA manages a wide range of asset classes including U.S. public and private fixed income, public equity, private equity, structured finance and distressed debt. PPMA has a well-developed organization supporting CDO efforts, having issued seventeen CDOs totaling $8.2 billion of original capital committed since 1996.

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.