Fitch Ratings Affirms St. George Funding CDO 2000-1.

NEW YORK -- Fitch Ratings affirms four classes of notes issued by St. George Funding CDO 2000-1, Ltd. (St. George). The following rating actions are effective immediately:

E[acute accent]-- $14,029,587 class A-1 notes at 'AAA';

E[acute accent]-- $43,143,106 class A-2 notes at 'AAA';

E[acute accent]-- $33,450,000 class B-1 notes at 'AAA';

E[acute accent]-- $15,000,000 class B-2 notes at 'AAA';

E[acute accent]-- $18,500,000 class C notes at 'A';

E[acute accent]-- $15,430,000 class D notes at 'BBB'.

E[acute accent]St. George is a collateralized debt obligation (CDO) managed by ACE Financial Solutions (ACE), which closed Sept. 12, 2000. St George is composed of 81% CMBS, 11% REIT, 5% CDO, and 3% ABS. Fitch conducted cash flow modeling utilizing various default timing and interest-rate scenarios to measure the breakeven default rates going forward relative to the minimum cumulative default rates required for the rated liabilities. E[acute accent]On Sept. 14, 2005, ACE sent a notification letter expressing their intention to redeem all the rated notes at par on Dec. 5, 2005. Based on this letter, Fitch affirms all classes. Failure to execute on the redemption may have negative credit implications, particularly for the class D notes. Since the last review on Sept. 15, 2004, 30% of the capital structure has been redeemed. The average rating factor has also improved to 'BBB+/BBB' from 'BBB/BBB-'. However, St. George is sensitive to rising interest rates. This sensitivity led to an interest shortfall to the class D and class E notes; principal dollars are being used to pay current interest on these notes. On the Sept. 5, 2005 payment date, the amount of the unpaid interest being paid with principal dollars was approximately $300,000. E[acute accent]The ratings of the class A-1, class A-2, class B-1, and class B-2 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 ratings of the class C and class D 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. E[acute accent]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, available on Fitch's web site at www.fitchratings.com.)

E[acute accent]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.