Fitch Ratings Affirms 9 Classes of ACA ABS 2003-2 Ltd.

NEW YORK -- Fitch Ratings has affirmed nine classes of notes issued by ACA ABS 2003-2 Ltd. (ACA 2003-2). These affirmations are the result of Fitch's review process and are effective immediately:

-- $10,000,000 class A-1SW notes 'AAA';

-- $315,000,000 class A-1SU notes 'AAA';

-- $146,500,000 class A-1SD notes 'AAA';

-- $108,000,000 class A-1J notes 'AAA';

-- $51,000,000 class A2 notes 'AA';

-- $36,000,000 class A3 notes 'A';

-- $7,000,000 class BF notes 'BBB';

-- $15,000,000 class BV notes 'BBB';

-- $3,000,000 class C notes 'BB'.

ACA 2003-2 is a collateralized debt obligation (CDO) that closed Nov. 6, 2003 and is managed by ACA Management, LLC. ACA 2003-2 is composed of approximately 73% residential mortgage-backed securities (RMBS), 9% CDOs, 8% commercial mortgage-backed securities (CMBS), 5% asset-backed securities (ABS), and 5% real estate investment trusts (REITs).

Since Fitch's last rating affirmation on Dec. 2, 2004, the collateral has continued to exhibit stable performance. The weighted average rating has remained stable within the 'BBB+/BBB' range. The senior overcollateralization (OC), class A-3 OC, class B OC, and class C OC ratios have remained stable since closing at 115.4%, 109.1%, 105.6%, and 105.2%, respectively. As of the Nov. 30, 2005 trustee report, ACA 2003-2 has no defaulted or distressed assets. Only 0.22% of the assets are rated below 'BBB-'.

The ratings of classes A-1SW, A-1SU, A-1SD, A-1J and A2 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 for the class A3, BF, BV and 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. In addition, the class A-1SW notes also benefit from a financial guaranty insurance policy issued by CIFG Guaranty (insurer financial strength rated 'AAA' by Fitch).

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.