Fitch Ratings Downgrades BEA CBO 1998-2 Ltd.

Business Editors

CHICAGO--(BUSINESS WIRE)--March 10, 2003

Fitch Ratings has downgraded the rating on one class of notes issued by BEA CBO 1998-2 Ltd., a collateralized bond obligation (CBO) backed predominantly by high yield bonds. Fitch also affirms the ratings of five tranches of this transaction. The class A-1L, A-1, and A-2 notes are affirmed due to an insurance wrap that is provided by Financial Securities Assurance, Inc.

The current ratings are as follows:

BEA CBO 1998-2 Ltd.

-- $10,506,906 class A-1L affirmed at 'AAA';

-- $71,000,000 class A-1 affirmed at 'AAA';

-- $100,000,000 class A-2 affirmed at 'AAA';

-- $20,000,000 class A-3 downgraded to 'C' from 'CCC-';

-- $22,000,000 class B-1 affirmed at 'C';

-- $8,500,000 class B-2 affirmed at 'C'.

According to its Feb. 2, 2003 trustee report, BEA CBO 1998-2 Ltd.'s collateral includes a par amount of $51.60 million (22.46%) defaulted assets. The class A overcollateralization test is failing at 96.57% with a trigger of 115% and the class B overcollateralization test is failing at 83.31% with a trigger of 104%.

In reaching its rating actions, Fitch reviewed the results of its cash flow model runs after running several different stress scenarios. Also, Fitch had conversations with Credit Suisse Asset Management, the collateral manager, regarding the portfolio.

Fitch will continue to monitor this transaction. Deal information and historical data on BEA CBO 1998-2 Ltd. is available on the Fitch Ratings web site at 'www.fitchratings.com'.