Fitch Downgrades 2 Classes from 1 XLCA-Insured C-BASS RMBS Deal.

NEW YORK -- Fitch Ratings has downgraded two of the following classes of subprime second lien residential mortgage-backed securities (RMBS). Class A1 and A2 are insured by XLCA.

C-BASS, series 2007-SL1

--Class A1 downgraded to 'CCC' from 'BB';

--Class A2 downgraded to 'CCC' from 'BB';

--Class M1 remains at 'C/DR6';

--Class M2 remains at 'C/DR6';

--Class B1 remains at 'C/DR6';

--Class B2 remains at 'C/DR6';

--Class B3 remains at 'C/DR6';

--Class B4 remains at 'C/DR6'.

Class A1 and A2 are insured by XLCA. Fitch's policy is to maintain ratings on insured transactions at the higher of the underlying rating of the insured transaction if rated by Fitch or the rating of the insurer.

Fitch downgraded XLCA's Insurer Financial strength (IFS) rating to 'CCC' and also placed the IFS on Rating Watch Evolving. For more information, see the July 29 press release ('Fitch Downgrades SCA, XLCA & XLFA; Placed on Rating Watch Evolving') available on the Fitch Ratings web site 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