Fitch Rates Times Square Funding, LLC's Asset-Backed Short-Term Notes 'F1'.

NEW YORK -- The asset-backed short-term notes issued by Times Square Funding, LLC (TSF) are rated 'F1' by Fitch Ratings. TSF, sponsored by Eurohypo AG, New York Branch (Eurohypo, rated 'A/F1' by Fitch), is a bankruptcy-remote special purpose Delaware limited liability company established to issue up to $5 billion of 4 (2) asset-backed commercial paper (CP) and extendable notes (EN). The proceeds will be used by TSF to advance loans to Eurohypo through repo transactions collateralized with financial assets that meet the programs investment criteria. Repo collateral may consist of rated securities and commercial real estate loans.

Full credit and liquidity support for the notes will be provided through a tri-party repo with Eurohypo. It is expected that the repo and the notes will be matched so that the repurchase date under the repo is the same as the final maturity date of the related notes. However, the term of the notes and the repo is not required to be matched because the full and timely repayment of the notes are ensured by TSF's right to terminate a repo at any time, and the repurchase price paid by Eurohypo must cover all interest accrued though the maturity date of the CP or the expected maturity date of ENs, as applicable. Should notes require any interim interest payments, Eurohypo must make corresponding interest payments under the repo. Each repo transaction is structured as a tri-party repo and will involve the Bank of New York, rated 'AA-/F1+' by Fitch, as the custodian. The repo collateral will be titled to, or be held by, the custodian for the benefit of TSF.

For more information, please see Fitch's presale report 'Times Square Funding, LLC' dated March 1, 2006. The presale report is available to all investors on Fitch's corporate site, www.fitchratings.com. For more information about Fitch's comprehensive subscription service Fitch Research, which includes all presale reports, surveillance, and credit reports on more than 20 asset-backed securities (ABS) asset classes, including collateralized debt obligations (CDOs), contact product sales at [phone] or at [e-mail].

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