Fitch Rates C-BASS CBO XVII Ltd. 'AAA/AA/A/BBB'.

NEW YORK -- Fitch assigns the following ratings to C-BASS CBO XVII Ltd. (C-BASS XVII):

--$350,500,000 class A first priority senior secured floating rate notes due 2041 'AAA';

--$26,500,000 class B second priority senior secured floating rate notes due 2041 'AA';

--$29,000,000 class C third priority secured floating rate deferrable interest notes due 2041 'A';

--$12,500,000 class D fourth priority secured floating rate deferrable interest notes due 2041 'BBB'.

The ratings of the class A and class B notes address the likelihood that investors will receive full and timely payments of interest, as per the transaction's governing documents, as well as the aggregate outstanding amount of principal by the stated maturity date. The ratings of the class C and class D notes address the likelihood that investors will receive ultimate interest payments, as per the transaction's governing documents, as well as the aggregate outstanding amount of principal by the stated maturity date.

The ratings are based on the quality and mixture of the portfolio assets, credit enhancement provided by support from subordinated notes, excess spread and protections incorporated into the structure. The ratings on the notes also reflect the experience and capabilities of C-BASS Investment Management LLC (CIM) as the collateral manager and Litton Loan Servicing, LP (Litton) as servicer of a substantial portion of the underlying collateral.

CIM carries the highest Fitch structured finance CDO asset manager rating, 'CAM1', and will serve as collateral manager for C-BASS XVII. Established in 2004, CIM is a wholly-owned subsidiary of Credit-Based Asset Servicing and Securitization LLC. (C-BASS) and serves as investment advisor to C-BASS-sponsored collateralized bond obligations (CBOs) and private investment funds. C-BASS' general business strategy involves targeted investments in subprime whole loans, subordinate Residential Mortgage Backed Securities (RMBS), scratch-and-dent subperforming and nonperforming whole loans, and servicing rights. C-BASS, which has been acquiring and managing mortgage assets since 1996, is a joint venture among MGIC Investment Corporation, the parent company of Mortgage Guaranty Insurance Corp. (MGIC), Radian Group Inc. (Radian), and members of senior management of C-BASS. MGIC and Radian each own a 46% interest in the company, with the remaining 8% owned by C-BASS management. The management team of C-BASS and CIM has extensive expertise in mortgage investing, trading, securitization, servicing, and the tax aspects of mortgage-backed securities and lending. As of September 2006, C-BASS had issued 96 transactions including 64 whole-loan securitizations, 16 B-Piece re-securitizations, and 16 CBOs.

C-BASS' capital growth is reflected in a steady increase in total capital, rising to $763 million as of December 2005 from less than $35 million in 1996. This growth has been achieved primarily through retained earnings. Additionally, C-BASS' wholly-owned subsidiary, Litton, is a leading servicer of subprime and high loan-to-value (HLTV) residential mortgage loans. Fitch rates Litton 'RPS1' for residential primary servicer for subprime and HLTV ratio mortgages and 'RSS1' for residential special servicer.

Proceeds from the issuance will be invested in a static portfolio of RMBS, asset-backed securities (ABS), commercial mortgage-backed securities (CMBS), and collateralized debt obligations (CDOs). The collateral supporting the capital structure will have a maximum Fitch weighted average rating factor (WARF) of 5.0 ('BBB/BBB-'). The collateral manager will purchase all investments for the portfolio on behalf of C-BASS CBO XVII Ltd., which is a special-purpose company incorporated under the laws of the Cayman Islands.

Additional information about the collateral manager is also available on the Fitch Ratings web site 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.