Fitch Rates NYCTL $49MM Tax Lien Collateralized Bonds, Series 2005-A.

NEW YORK -- NYCTL 2005-A trust tax lien collateralized bonds, series 2005-A, are rated by Fitch Ratings as follows:

-- $34,771,000 class A 'AAA';

-- $6,954,000 class B 'AA';

-- $5,215,000 class C 'A';

-- $2,897,000 class D 'BBB-'.

The bonds are secured by liens on real property resulting from unpaid real property taxes, assessments, sewer rents, sewer surcharges, water rents, and other charges (tax liens). The tax liens were imposed by the City of New York on properties located in New York City.

The 'AAA' rating on the class A bonds reflects the 40.00% credit enhancement provided by the 12.00% class B bonds, the 9.00% class C bonds, the 5.00% class D bonds, and 14.00% in overcollateralization (OC). The 'AA' rating on the class B bonds reflects the 28.00% credit enhancement provided by the class C bonds, the class D bonds, and OC. The 'A' rating on the class C bonds reflects the 19.00% credit enhancement provided by the class D bonds and OC. The 'BBB-' rating on the class D bonds reflects the 14.00% credit enhancement provided by OC.

Additional support for the bonds is available from an interest reserve fund initially equal to three months interest on the original principal amount of the bonds until such amount is equal to six months interest on the outstanding bonds, and thereafter remains equal to six months interest payable on the bonds. The interest reserve fund is designed to help protect the bondholders from potential fluctuations in cash flow from the underlying collateral that could impair their receipt of timely interest. A $2,500,000 working capital reserve fund is also in place to cover lien administration expenses and pay the servicers their base fee. In the event that moneys in either the interest reserve fund or the working capital reserve fund are insufficient to meet their required needs, The Bank of New York, as indenture trustee, will advance interest payments (by an amount not to exceed 12.50% of the current outstanding lien balance) and lien administration expenses, provided that the advances are deemed as recoverable by The Bank of New York.

Fitch's ratings on the bonds reflect the quality and nature of the underlying collateral, the credit enhancement provided by subordinate classes and OC, the servicing experience and capabilities of JER Revenue Services, LLC and Xspand, Inc., and the transaction's financial and legal structures.

The final collateral pool, which will secure the bonds, consists of 2,723 unpaid tax liens, with an initial tax lien principal balance of $57,952,556. The average unpaid balance of the liens sold to the trust is $21,283 with a weighted average lien to property value ratio of 40.52% and a weighted average age of the tax liens of 83.53 months. The boroughs of Brooklyn, Queens, and the Bronx have the largest concentration of unpaid tax liens in the collateral pool with 35.51%, 24.58%, and 24.29% respectively. All unpaid tax liens in the collateral pool are scheduled to accrue interest at a rate of 18% per annum compounded daily.

Stated maturity for the bonds is Dec. 10, 2018. For federal income tax purposes, the bonds will be treated as indebtedness and not as an ownership interest in the collateral or an equity interest in the issuer or in a separate association taxable as a corporation. The bonds will pay principal on a pro rata basis since tax liens do not qualify as real estate mortgage investment conduit (REMIC) eligible collateral. Principal and interest will be paid on the 10th day of March, June, September, and December (assuming each day is a business day) beginning December 2005.

Fitch's rating definitions are available on the agency's public web site, www.fitchratings.com. Published ratings, criteria and methodologies, and relevant policies and procedures are also available from this site, at all times. This document will remain on the public site for seven days.