Fitch Ratings Affirms 3 Tranches of EPOCH 2001-1, Ltd.

NEW YORK -- Fitch Ratings affirms three tranches of EPOCH 2001-1, Ltd. as follows:

-- $25,000,000 class I notes at 'AA-';

-- $16,000,000 class II notes 'BBB';

-- $15,000,000 class III notes 'B'.

Additionally, the following ratings are unaffected:

-- $13,000,000 class IV notes remain at 'CC';

-- $15,000,000 class V notes remain at 'D'.

EPOCH 2001-1, Ltd., incorporated under the laws of the Cayman Islands, was created to enter into a credit default swap with Morgan Stanley Credit Products, Ltd. (MSCPL) and to issue the above-referenced note liabilities. The notes are supported by the cash flows of the collateral, as well as the credit default swap premium paid by MSCPL. The credit default swap currently references a portfolio of 96 entities, down from 100 reference entities at origination. The ratings assigned to the notes address the timely payment of interest and ultimate payment of principal.

In conjunction with the review, Fitch stressed the underlying asset portfolio with a variety of default scenarios derived from Fitch's VECTOR model, which utilizes a multi-period Monte Carlo simulation. Fitch has reviewed the credit quality of the individual reference entities comprising the portfolio. Since Fitch's last rating action in June 2004, the portfolio has not experienced any additional credit events. Some negative credit migration has occurred within the portfolio, thus lowering the overall weighted average rating factor (WARF). However, Fitch has determined that the current ratings assigned to all rated securities, as indicated above, still reflect the current risk to noteholders.

Fitch will continue to monitor and review this transaction for future rating adjustments as needed. Additional deal information and historical data are available on the Fitch Ratings web site at www.fitchratings.com.