Fitch Ratings Affirms 7 Classes of Fort Point CDO I Ltd.

NEW YORK -- Fitch Ratings affirms seven classes of notes issued by Fort Point CDO I Ltd., (Fort Point I), a revolving cash-flow collateralized debt obligation (CDO). The following rating actions are effective immediately:

-- $285,000,000 class A-1 floating-rate senior notes affirm at 'AAA';

-- $33,000,000 class A-2a floating-rate senior notes affirm at 'AAA';

-- $12,000,000 class A-2b fixed-rate senior notes affirm at 'AAA';

-- $14,000,000 class A-3a floating-rate senior notes affirm at 'AA';

-- $12,000,000 class A-3b fixed-rate senior notes affirm at 'AA';

-- $12,000,000 class B floating-rate senior subordinate notes affirm at 'A';

-- $12,000,000 class C floating-rate subordinate notes affirm at 'BBB'.

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

Fitch conducted a detailed analysis of Fort Point I and its underlying collateral. Since closing, the collateral has continued to perform as expected. As a result of this analysis, Fitch has determined that the original ratings assigned to the class A, B, and C notes still reflect the current risk to noteholders.

Fort Point I, which closed Oct. 24, 2002, is a cash-flow CDO managed by State Street Research & Management Co., which is rated 'CAM2' by Fitch as a manager of structured finance CDOs. Fort Point I is composed of U.S. residential mortgage-backed securities (RMBS), asset-backed securities (ABS), commercial mortgage-backed securities (CMBS), real estate investment trusts (REITs), and CDOs. Included in this review, Fitch discussed the current state of the portfolio with the asset manager and its portfolio management strategy.

As of the most recent trustee report dated June 18, 2004, the class A, B, and C overcollateralization (OC) ratios continue to pass their test levels. Furthermore, the ratios have marginally increased from their closing levels. The class A OC ratio was 113.39% versus a minimum trigger of 105.00%, the class B OC ratio was 109.69% versus a minimum trigger of 103.5%, and the class C OC ratio was 106.23% versus a minimum trigger of 101.25%. The weighted average rating factor of 15.35 ('BBB/BBB-') was below its maximum trigger of 17.50. In addition, the transaction was passing all of its portfolio profile tests. As of the June 18, 2004 trustee report, Fort Point I had approximately $406 million of total collateral and eligible investments and no defaulted assets or assets rated 'CCC' or below.

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'.