Fitch Ratings Affirms Race Point CLO II, Ltd.

NEW YORK -- Fitch Ratings affirms nine classes of notes issued by Race Point CLO II, Ltd. (Race Point II). These affirmations are the result of Fitch's review process and are effective immediately:

--$402,000,000 class A-1 notes 'AAA';

--$15,000,000 class A-2 notes 'AA+';

--$15,000,000 class B-1 notes 'A';

--$38,000,000 class B-2 notes 'A';

--$12,000,000 class C-1 notes 'BBB';

--$5,000,000 class C-2 notes 'BBB';

--$3,500,000 class D-1 notes 'BB+';

--$3,000,000 class D-2 notes 'BB+';

--$4,000,000 class D-3 notes 'BB+'.

Race Point II is a collateralized debt obligation (CDO) that closed April 16, 2003 and is managed by Sankaty Advisors, LLC. Race Point II's portfolio will be revolving until May 2009 and currently consists of 86.4% leveraged loans and 13.6% high yield bonds.

These affirmations are the result of the relatively stable performance of the underlying collateral and the steady coverage test ratios. Although the weighted average rating factor (WARF) test is currently failing at a level of 52.5 ('B/B-') versus a maximum of 52.0 ('B+/B'), it has improved since the last rating action in August 2005, when the WARF was at 52.7. According to the latest trustee report dated Aug. 31, 2006, all overcollateralization (OC) and interest coverage (IC) ratios are passing their minimum required levels. The class A, B, C, and D OC tests are all passing their requirements by margins of at least 7%, while the lowest IC passing margin (for the class D IC test) is over 29%. There were no defaulted assets in the portfolio as of the latest trustee report.

The ratings of the classes A-1, A-2, B-1, B-2, C-1, C-2, D-1, D-2, and D-3 notes 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.

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 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.