Fitch Ratings Affirms Trapeza CDO III, LLC.

NEW YORK -- Fitch Ratings affirms seven classes of notes issued by Trapeza CDO III, LLC (Trapeza III). These affirmations are the result of Fitch's review process and are effective immediately:

-- $108,497,331 class A1A notes at 'AAA';

-- $71,500,000 class A1B notes at 'AAA';

-- $25,000,000 class B notes at 'AA+';

-- $31,250,000 class C-1 notes at 'A';

-- $31,250,000 class C-2 notes at 'A';

-- $13,259,797 class D notes at 'BBB';

-- $5,714,284 class E notes at 'BB'.

Trapeza III is a collateralized debt obligation (CDO) managed by Trapeza Capital Management, LLC, which closed June 25, 2003. Trapeza III is composed of bank and thrift trust preferred securities.

Since the last review, the collateral has continued to perform, with slight improvement, in the weighted average bank score of the portfolio as determined by the Fitch Bank Scoring Model. As of the Oct. 31, 2005 trustee report, both the class A/B and class C/D overcollateralization (OC) ratios remain relatively unchanged, and continue to pass their performance test triggers of 141.25% and 103.0% with ratios of 146.3% and 106.8%, respectively. There are currently no deferring or defaulted securities in the portfolio.

The ratings on the classes A1A, A1B, and B notes address the likelihood that investors will receive timely payment of interest and ultimate payment of principal by the stated maturity date. The ratings on the classes C-1, C-2, D, and E notes address the likelihood that investors will receive ultimate payment of interest and ultimate payment of principal by the stated 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 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 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.