Fitch Ratings Affirms Magnetite IV CLO, Ltd.

NEW YORK -- Fitch Ratings affirms six classes of notes issued by Magnetite IV CLO, Ltd., (Magnetite IV). These affirmations are the result of Fitch's review process. The following rating actions are effective immediately:

--$228,000,000 Class I senior secured notes affirmed at 'AAA';

--$26,000,000 Class II senior secured notes affirmed at 'AA';

--$41,000,000 Class IIIa mezzanine secured notes affirmed at 'A';

--$5,000,000 Class IIIb mezzanine secured notes affirmed at 'A'

--$6,000,000 Class IV mezzanine secured notes affirmed at 'BBB'

--$12,000,000 Class A combination securities affirmed at 'BBB'.

Magnetite IV is a collateralized loan obligation (CLO) which closed July 25, 2002 and is managed by BlackRock Financial Management Inc., a subsidiary of BlackRock Inc., a New York based investment manager with approximately $1 trillion in assets under management as of June 30, 2006 pro forma for the recently completed merger between BlackRock and Merrill Lynch Investment Managers. As of the August 31, 2006 trustee report, Magnetite IV is composed of 92.5% high yield loans and 7.5% high yield bonds. Included in this review, Fitch Ratings discussed the current state of the portfolio with the asset manager and their portfolio management strategy going forward.

Magnetite IV continued to perform within expectations with credit enhancement levels remaining stable since the last rating affirmation on July 19, 2005. This transaction is passing all its collateral quality tests, and there are no defaulted assets. Due to the fact that Magnetite IV has never failed a coverage test, there has been no deleveraging of the liabilities since the close of the transaction. Magnetite IV is scheduled to exit the reinvestment period in July 2007.

The ratings of the Class I and Class II Notes address the likelihood that investors will receive full and timely payments of interest on scheduled interest payment dates, as well as the stated balance of principal on the final payment date. The ratings of the Class IIIa, Class IIIb, and Class IV Notes address the likelihood that investors will receive ultimate and compensating interest payments, as well as the stated balance of principal on the final payment date. The ratings to ultimate interest address the full payment of deferred interest by the final payment date. The ratings of the Class A Combination Securities address the likelihood that investors will receive the stated balance of principal on the final payment date. The class A Combination Securities, consisting of $6 million dollars of Preferred Shares and $6 million of Class IV Mezzanine Secured Notes, have received $4.1 million dollars in distributions leaving a rated balance of $7.9 million outstanding.

As a result of this analysis, Fitch has determined that the original ratings assigned to the notes still reflect the current risk to noteholders.

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 Oct. 4, 2006, 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.