Fitch Ratings Affirms 1 and Upgrades 3 Classes of C-BASS CBO X.

NEW YORK -- Fitch Ratings affirms one and upgrades three classes of notes issued by C-BASS CBO X, LTD., (C-BASS X). These rating actions are the result of Fitch's review process and are effective immediately:

-- $311,823,793 class A notes affirmed at 'AAA';

-- $25,000,000 class B notes upgraded to 'AA+' from 'AA';

-- $20,000,000 class C notes upgraded to 'A+' from 'A';

-- $18,600,000 class D notes upgraded to 'BBB+' from 'BBB'.

C-BASS X, which closed May 27, 2004, exited its limited reinvestment period and is now a static-pool asset-backed collateralized debt obligation (CDO) managed by Credit-Based Asset Servicing and Securitization LLC (C-BASS; rated 'CAM1' by Fitch for managing structured finance CDOs).

The upgrades are due primarily to the increased credit enhancement available to support the notes due to the normal amortization of the class A-1 notes, as well as the scheduled principal payments to the class D notes via the interest waterfall. As of the most recent trustee report dated Jan. 31, 2006, 87.2% of the class A-1 notes and 86.5% of the class D notes remain outstanding. This deleveraging has resulted in increased overcollateralization (OC) ratios as evidenced by the class A/B OC test increasing to 120.4% as of Jan. 31, 2006 from 117.7% at close, relative to a trigger of 110.5%. The interest coverage (IC) tests have declined during this same period. The A/B IC test has decreased to 160.8% from 343.8%, but still retains a significant cushion above its 112.5% trigger.

Since the deal closed, the collateral has continued to perform well. The weighted average rating factor (WARF) has improved to 5.0 in the Jan. 31, 2006 report from 6.3 at close, remaining in the 'BBB/BBB-' range.

The ratings on the class A and B notes address the timely payment of interest and ultimate payment of principal as outlined in the governing documents. The ratings on the class C and D notes address the ultimate payment of interest and principal as outlined in the governing documents.

Fitch will continue to monitor and review this transaction for future rating adjustments. Additional deal information and historical data are available on the Fitch Ratings web site at www.fitchratings.com. (For more information on the Fitch VECTOR Model, see 'Global Rating Criteria for Collateralised Debt Obligations,' dated Sept. 13, 2004 and also available 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.