Fitch Ratings Affirms South Coast Funding VI, Ltd.

NEW YORK -- Fitch Ratings affirms four classes of notes issued by South Coast Funding VI Ltd. and co-issuer South Coast Funding VI Corp. (collectively, South Coast VI). These affirmations are the result of Fitch's review process and are effective immediately:

--$210,000,000 class A-1 at 'AAA';

--$36,000,000 class A-2 at 'AAA';

--$30,000,000 class B at 'AA';

--$12,951,675 class C at 'BBB'.

South Coast VI is a collateralized debt obligation managed by TCW Investment Management Company, which closed on Sept. 28, 2004. South Coast VI is in its substitution period and is composed of 82.4% residential mortgage-backed securities (RMBS), 9.3% commercial mortgage-backed securities (CMBS), 4.9% collateralized debt obligations (CDOs), and 3.4% asset-backed securities (ABS). Fitch reviewed the credit quality of the individual assets comprising the portfolio.

Since close, the collateral has continued to perform. The class A/B overcollateralization (OC) ratio has experienced a slight decrease to 109.7% as of the Feb. 15, 2006 trustee report, from 109.9% as of the Dec. 29, 2004 trustee report, above its performance trigger of 104.0%. The class C OC ratio has remained constant at 104.7% over the same time period, above the trigger of 101.0%. The Fitch weighted average rating factor has increased to 4.4 from 4.2, below the trigger of 4.5. As of the most recent trustee report available, South Coast VI had no defaulted assets in the portfolio. The preference shares have a 15% equity cap, with the excess proceeds going toward the amortization of the class C notes. To date, this has led to paydowns in approximately $0.5 million of the class C notes.

The ratings of the classes A-1, A-2, and B 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. The rating of the class C notes addresses 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.

As a result of this analysis, Fitch has determined that the original ratings assigned to the rated 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 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.