Fitch Ratings Affirms 6 Classes of Independence IV CDO, Ltd.

CHICAGO -- Fitch Ratings affirms six classes of notes issued by Independence IV CDO, Ltd. (Independence IV), a cash-flow collateralized debt obligation (CDO), effective immediately:

-- $104,741,225 class A-1 (series 1) at 'AAA';

-- $102,248,176 class A-1 (series 2) at 'AAA';

-- $34,082,725 class A-2 at 'AAA';

-- $32,378,589 class A-3 at 'AAA';

-- $34,082,725 class B at 'AA';

-- $24,625,703 class C at 'BBB'.

Independence IV, which closed June 26, 2003, is a cash-flow CDO managed by Declaration Management & Research LLC, which is rated 'CAM2' by Fitch as a manager of structured finance CDOs. Independence IV is composed of residential mortgage backed securities (RMBS), asset-backed securities (ABS), commercial mortgage-backed securities (CMBS), real estate investment trusts (REITs), and CDOs.

The classes A/B and C overcollateralization ratios have remained stable at 112.5% and 104.1%, respectively, and continue to pass their triggers as of the most recent trustee report dated Feb. 15, 2006. The weighted average rating factor increased slightly to 17 ('BBB/BBB-') from 16 ('BBB/BBB-') as of the most recent trustee report dated Feb. 15, 2006, but continues to pass its trigger.

Fitch conducted detailed analysis of Independence IV and its underlying collateral. As of the Feb. 15, 2006 trustee report, Independence IV had $9.1 million of defaulted assets. Fitch has determined that the current ratings for classes A-1 (series 1), A-1 (series 2), A-2, A-3, B, and C notes still reflect the current risk to noteholders.

The ratings of the class A-1 (series 1), A-1 (series 2), A-2, A-3, and B notes address the likelihood that investors will receive timely payment of interest and ultimate payment of principal, as per the governing documents. The ratings of the class C notes address the likelihood that investors will receive ultimate payment of interest and ultimate payment of principal, as per 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.

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.