Fitch Ratings Affirms 5 Classes of Fort Point CDO II Ltd.

NEW YORK -- Fitch affirms five classes of notes issued by Fort Point CDO II Ltd. (Fort Point II). These affirmations are the result of Fitch's review process and are effective immediately:

--$347,500,000 class A-1 'AAA';

--$60,000,000 class A-2 'AAA';

--$38,750,000 class A-3 'AA';

--$12,500,000 class B 'A-'

--$12,500,000 class C 'BBB'.

Fort Point II is a collateralized debt obligation (CDO) which closed October 16, 2003 and is managed by BlackRock Financial Management, Inc. (BlackRock). BlackRock is rated 'CAM1' by Fitch for managing structured finance CDOs. Fort Point II is a revolving transaction and will exit its reinvestment period in November 2007. As of August 30, 2006, the portfolio is composed of 68.5% residential mortgage-backed securities (RMBS), 6.8% CDOs, 6.1% commercial mortgage-backed securities (CMBS), 3.4% debt securities issued by real estate investment trusts (REITs), and 3.1% asset-backed securities (ABS). The remaining 12.1% of assets represent funded synthetic exposure to primarily CMBS bonds. Included in this review, Fitch discussed the current state of the portfolio with the asset manager and its portfolio management strategy going forward.

This affirmation reflects stable credit quality of the portfolio, with the weighted average rating factor improving to 3 ('A-/BBB+') as of Aug. 30, 2006 from 4.0 ('BBB/BBB-') as of Jan. 27, 2006. The overcollateralization (OC) ratios are stable and remain above their trigger levels. While the interest coverage (IC) ratios also remain above their trigger levels, the amortization of the higher yielding assets has been gradually compressing the IC ratios. We expect the collateral composition to continue to evolve as the assets continue to amortize and the manager retains the ability to reposition the portfolio until the end of the reinvestment period.

The ratings of the class A-1 notes, class A-2 notes, and class A-3 notes address the likelihood that investors will receive full and timely payments of interest, as per the governing documents, as well as the stated balance of principal by the legal final maturity date. The ratings of the class B notes and class C notes address the likelihood that investors will receive ultimate and compensating interest payments, as per the governing documents, as well as the stated balance of principal by the legal final maturity date.

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, available on Fitch's web site 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.