Fitch Downgrades 5 Classes of Fort Point CDO I, Ltd.

NEW YORK -- Fitch Ratings has downgraded five classes of notes issued by Fort Point CDO I, Ltd.(Fort Point).

These rating actions are the result of severe credit deterioration among 2004, 2005, and 2006 vintage residential mortgage-backed securitizations (RMBS) experienced since Fitch's last rating action in September 2008. Approximately 66% of the portfolio has been downgraded since the last review, with about 45.9% of the portfolio downgraded since June 1, 2009. The main drivers for the downgrades in the underlying RMBS during the summer were the continued deterioration of home prices and employment rates causing an increase in delinquencies despite significant seasoning in the loans.

Approximately 62.4% of the portfolio carries a Fitch-derived rating below investment grade, with 50.5% rated in the 'CCC' category or lower. This is up from 42.2% rated below investment grade and 22.3% rated 'CCC' and lower at the last review. As of the August 2009 trustee report, 16.9% of the portfolio is considered defaulted.

Fitch has downgraded the A-1 class of notes to 'CC' because in Fitch's opinion, default of this class of notes is probable. Fitch believes that default of the A-2 and A-3 classes of notes is inevitable. These notes have been downgraded to 'C'. Fitch does not expect classes B and C to receive any future payments. These classes are affirmed at 'C'.

Fort Point I is a collateralized debt obligation (CDO) that closed on Oct. 24, 2002. The portfolio is monitored by State Street Research & Management Company. The reinvestment period ended in October 2006. The reference portfolio is composed of 58.1% RMBS, 24.2% commercial mortgage backed securities (CMBS), 8.7% asset backed securities (ABS), 7.0% CDOs, and 2.0% real estate investment trusts (REIT).

Fitch will continue to monitor and review this transaction for future rating adjustments. Additional transaction information and historical data are also available at www.fitchratings.com.

Fitch has taken the following rating actions:

--$132,567,445 class A-1 downgraded to 'CC' from 'A';

--$33,000,000 class A-2a downgraded to 'C' from 'B';

--$12,000,000 class A-2b downgraded to 'C' from 'B';

--$14,000,000 class A-3a downgraded to 'C' from 'CCC';

--$12,000,000 class A-3b downgraded to 'C' from 'CCC';

--$12,539,600 class B affirmed at 'C';

--$12,881,851 class C affirmed at 'C'.

These rating actions reflect the application of Fitch's current criteria, 'Global Rating Criteria for Structured Finance CDOs' (Dec. 16, 2008), available on the Fitch 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.