Fitch Downgrades 2 Classes of DASH I, L.P.

NEW YORK -- Fitch Ratings downgrades two classes of notes issued by Diversified Asset Securitization Holdings I, L.P. (DASH). The following rating actions are effective immediately:

-- $123,362,244 class A-1 notes downgraded to 'BB' from 'A-';

-- $25,464,683 class A-2 notes downgraded to 'BB' from 'A-';

-- $36,896,563 class B notes remain at 'C'.

DASH is a collateralized debt obligation (CDO) managed by AAM Company, which closed Dec. 18, 1999. Currently, DASH is composed of 47.2% residential mortgage-backed securities (RMBS), 13.2% asset-backed securities (ABS), 34.9% commercial mortgage-backed securities (CMBS), and 4.7% CDOs. Due to the occurrence of an event of default under DASH's governing documents, the portfolio manager is prohibited from trading any securities.

The rating actions are the result of continued deterioration in the credit quality of DASH's collateral portfolio. Since the last rating action on Dec. 17, 2004, DASH's overcollateralization (OC) coverage ratios have continued to erode. The class A and class B OC ratios have decreased to 99.0% and 84.1% as of Sept. 30, 2005 from 104.1% and 90.5% on Oct. 31, 2004, respectively. However, the calculation of DASH's OC ratios does not include principal proceeds, resulting in artificially low coverage levels. When the calculation is adjusted to include principal proceeds in the numerator, the OC ratios improve slightly to approximately 101.7% and 86.1%. Either way, the coverage ratios have eroded since last review. The declining coverage ratios have been compounded by the diversion of principal proceeds to pay class A interest. On the Oct. 3, 2005 payment date, $124,553 of principal proceeds were allocated to pay class A interest shortfalls, thus further eroding the collateral available to support the rated notes.

The failure of the class A OC test has caused available proceeds to be applied towards the redemption of the class A notes. It is unlikely the class B noteholders will receive future cashflow.

The portfolio contains three defaulted securities totaling $9.7 million, including one new default since the last rating action in the amount of $3.8 million. Additionally, the portfolio contains a number of distressed assets where further deterioration is expected. These assets have exposure to troubled sectors such as manufactured housing, aircraft leases, and mutual fund fees.

The ratings of the class A-1 and A-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 B 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.

Fitch will continue to monitor and review this transaction for future rating adjustments. Additional deal information and historical data are available on the Fitch Ratings web site at www.fitchratings.com. For more information on the Fitch VECTOR Model, see 'Global Rating Criteria for Collateralised Debt Obligations,' dated Sept. 13, 2004, also available 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.