Fitch Rates Straits Global ABS CDO I, Ltd. 'AAA/AA/BBB'.

NEW YORK -- Fitch has rated the following notes issued by Straits Global ABS CDO I, Ltd. and co-issuer Straits Global ABS CDO I, Inc. (collectively referred to as the co-issuers):

-- $248,000,000 class A-1 first priority senior secured floating-rate notes due 2040 'AAA';

-- $72,000,000 class A-2 second priority senior secured floating-rate notes due 2040 'AAA';

-- $41,000,000 class B-1 senior secured floating-rate notes due 2040 'AA';

-- $7,000,000 class B-2 senior secured fixed-rate notes due 2040 'AA';

-- $13,000,000 class C-1 mezzanine secured floating-rate notes due 2040 'BBB';

-- $3,000,000 class C-2 mezzanine secured fixed-rate notes due 2040 'BBB'.

The ratings on the class A-1, A-2, B-1 and B-2 notes address the timely payment of interest and ultimate payment of principal as outlined in the governing documents. The ratings on the class C-1 and C-2 notes address the ultimate payment of interest and principal as outlined in the governing docs.

The ratings are based upon the capital structure of the transaction, the quality of the collateral, and the overcollateralization and interest coverage tests provided for within the indenture. A notable feature of the structure includes the use of excess interest to pay down the notes. The class C-1 notes will be paid down from excess interest proceeds after the preference shares have received a dividend yield of 12%.

At the end of the 90 day ramp-up period, the quality of the collateral will have a maximum Fitch weighted average rating factor (WARF) of 4.74 ('BBB/BBB-'). Additionally, the ratings address the experience and capabilities of Declaration Management & Research LLC (Declaration) as Collateral Manager and Straits Lion Asset Management Limited (Straits Lion) as Collateral Co-Manager. Approximately 92% of the U.S.-based assets and 8% of the non U.S.-based assets will be selected and monitored by Declaration and Straits Lion, respectively. Any non U.S.-dollar denominated asset will be deemed to be dollar denominated as long as the asset is subject to a total return swap transaction to eliminate any currency risk arising from the receipt of cash flows.

The proceeds of the notes will be used to purchase an investment portfolio consisting of approximately 80% residential mortgage-backed securities (RMBS), 10% collateralized debt obligations (CDOs), 6% commercial mortgage-backed securities (CMBS), and 4% asset-backed securities (ABS). The portfolio will have a three-year substitution period during which time principal proceeds will be used to pay down notes beginning on the first quarterly payment date, however the manager may use proceeds from the sale of collateral to purchase or substitute assets.

Declaration, a Delaware limited-liability company, formally known as Independence Fixed Income LLC, was founded in 1989. The company is a wholly owned subsidiary of Manulife and operates as a registered investment advisor providing fixed-income asset management services to institutional clients. As of Sept. 30, 2004, Declaration's assets under management included core fixed income, LIBOR plus and structured finance investments totaling more than $8.3 billion, with ABS, CMBS and MBS accounting for 73% of total assets under management, 31% of which were included in CDO portfolios. Declaration is located in McLean, Va., with 29 investment professionals and a seven-member team dedicated to structured finance and corporate credit analysis. Senior management has worked together for an average of 14 years. The firm combines advanced proprietary analytic systems with a hands-on credit review process to evaluate prospective credits. Declaration received a 'CAM2' rating based on the nine criteria factors used by Fitch to evaluate CDO asset managers. Each criteria factor receives a score on a scale from 1-5, with 1 being the highest.

Incorporated in Singapore in 1996, Straits Lion Asset is 80% owned by Great Eastern Holdings Limited (GEH) and 20% by The Straits Trading Company Limited (STC). Both GEH and STC are members of the OCBC group of companies. GEH is the holding company of The Great Eastern Life Assurance Company Limited, which was incorporated in 1908 and is one of the largest insurance companies in Singapore in terms of market share and total assets. STC, an investment holding company, was formed in 1887. As of Sept. 30, 2004, Straits Lion managed Singapore $23.7 billion in assets, making it one of Singapore's largest asset managers. Straits Lion provides both fund management and investment advisory services to the GEH and STC group of companies, including equity, fixed income and balanced portfolio management. Current staff strength stands at 44, with 12 investment professionals. Senior managers have an average of 15 years of portfolio management experience. The core business of Straits Lion is investment management, with specialization in managing insurance and institutional funds with Asian mandates. Although its primary focus is on equities and fixed income management, Straits Lion has also developed capabilities in alternative investment management, such as CDOs, hedge funds and private equity.

For more information, please refer to the presale report titled 'Straits Global ABS CDO I, Ltd./Inc.', available on the Fitch Ratings web site at 'www.fitchratings.com', along with additional information about Declaration.