Fitch Affirms Pacific Shores CDO Ltd.

NEW YORK -- Fitch affirms all classes of notes issued by Pacific Shores CDO Ltd. These affirmations are the result of Fitch's review process and are effective immediately:

--$337,074,292 class A notes at 'AAA';

--$96,000,000 class B-1 notes at 'AA';

--$16,000,000 class B-2 notes at 'AA';

--$23,202,274 class C notes at 'A';

--$21,500,000 class 1 preference shares at 'BBB-';

--$7,000,000 class 2 preference shares at 'BBB-'.

Pacific Shores CDO Ltd. is a cash collateralized debt obligation (CDO) managed by Pacific Investment Management Co. (PIMCO) which closed June 27, 2002. Fitch rates PIMCO 'CAM2' for managing structured finance CDOs. The portfolio comprises ABS, CMBS, CDO, RMBS, and corporate debt. Included in this review, Fitch conducted cash flow modeling for various default timing interest rate scenarios, and prepayment assumptions to measure the breakeven default rates going forward relative to the minimum cumulative default rates required for the rated liabilities.

The class A notes have paid down $194,925,708 or 36.64% of the original balance of $532,000,000. The payments to the class A notes have resulted in improved credit enhancement levels for all classes of notes and the preference shares. All overcollateralization and interest coverage tests are passing the covenants. The weighted average coupon (WAC) test, and weighted average spread test are passing their required levels.

The ratings of the class A, B-1, B-2 notes address 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 rating of the class C notes addresses 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. The ratings of the class 1 and class 2 preference shares address the likelihood that investors receive ultimate and compensating payments resulting in a yield on the rated balance equivalent to 2% per annum, as per the governing documents, as well as the initial preference share rated balance 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 Collateralised Debt Obligations,' dated Oct. 4, 2006 and also available 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.