Fitch Ratings Affirms Preferred Term Securities XI, Ltd.

NEW YORK -- Fitch Ratings affirms five classes of notes issued by Preferred Term Securities XI, Ltd. (PreTSL XI). These affirmations are the result of Fitch's review process and are effective immediately:

-- $343,000,000 senior A-1 notes at 'AAA';

-- $70,000,000 senior A-2 notes at 'AAA';

-- $124,500,000 mezzanine B1 notes at 'A';

-- $13,000,000 mezzanine B2 notes at 'A';

-- $65,500,000 mezzanine B3 notes at 'A'.

PreTSL XI is a collateralized debt obligation (CDO), which closed Sept. 17, 2003. PreTSL XI is a static pool composed primarily of bank and thrift trust preferred securities. Included in this review, Fitch performed a full analysis of the collateral included in the portfolio.

Since closing, the collateral has continued to perform, with a slight improvement in the weighted average bank score as determined by the Fitch Bank Scoring Model. To date, there have been no obligors that have deferred interest payments at any time. One institution totaling 4.25% of the initial portfolio has been acquired by a separate institution not previously included in the portfolio, allowing obligor exposure to remain unchanged. The senior overcollateralization (OC) ratio is currently at 154.9%, and is in compliance with its performance trigger of 128%.

As a result of this analysis, Fitch has determined that the current ratings assigned to the senior and mezzanine 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 Fitch's approach to rating CDOs of trust preferred securities, see the special report, 'Rating Criteria for U.S. Bank and Insurance Trust Preferred CDOs' dated Feb. 2, 2005 and also available at 'www.fitchratings.com'.