Fitch Ratings Downgrades Bristol CDO I, Ltd.

NEW YORK -- Fitch Ratings downgrades class B and withdraws the rating of class C notes issued by Bristol CDO I, Ltd. The following rating actions are effective immediately:

-- $ 109,207,767 Class A-1 affirm at 'AA+';

-- $ 10,016,820 Class A-2 affirm at 'AA+';

-- $ 30,000,000 Class B downgrade to 'B' from 'BB';

-- $ 12,978,536 Class C rated 'C/DR6' is withdrawn.

In addition, Fitch also assigns a 'DR2' rating to the class B notes.

Bristol CDO I, Ltd. (Bristol) is a collateralized debt obligation which closed on October 11, 2002 and is secured by a static pool of asset backed securities. Vanderbilt Capital Advisors, LLC (Vanderbilt) selected the initial collateral and serves as the administrative advisor for the transaction. The collateral is primarily composed of asset backed securities (ABS) -- 43.1%, residential mortgage-backed securities (RMBS) -- 36.2%, collateralized debt obligations (CDO) -- 12.9%, commercial mortgage backed securities (CMBS) -- 5.6%, and corporate bonds -- 2.2%.

Since the previous rating action in January 2005, Bristol has suffered further collateral deterioration in the aircraft and airline ABS, manufactured housing RMBS, and some mezzanine and junior CDO tranches. Since Fitch's last rating action Bristol's collateral rated 'B' and below has increased to 21.8% as of the most recent trustee report dated April 3, 2006, from 15.6% as of Jan. 3, 2005. The weighted average rating factor (WARF) increased to 29 ('BBB-/BB+') from 21 ('BBB-/BB+') as of the same dates, respectively, and above than the required 7 ('A/A-').

The class A/B overcollateralization (OC) ratio fell to 100.8% from 102.1%, below the threshold of 104.5%. The class C OC ratio declined to 92.7% from 96.9%, below the threshold of 102%. The class C OC ratio has been failing its threshold since November 2003. Due to the failure of OC tests, Class A has been de-leveraging and so far paid down 48.9% of the original par. Due to the OC test failure, class C notes have been cut off from the interest distributions. We do not expect class C to receive any cash flows in the future. Since no further recovery is expected, Fitch is withdrawing the rating on these notes.

Included in this review, Fitch Ratings discussed the current state of the portfolio with Vanderbilt. In addition, 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.

As a result of this analysis, Fitch has determined that the rating assigned to Class B Notes no longer reflects 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 available on Fitch Ratings web site at www.fitchratings.com.

Fitch's Recovery Ratings (RR), introduced in 2005, are a relative indicator of creditor recovery on a given obligation in the event of a default. A broad overview of Fitch's RR methodology as it relates to specific sectors, including a Case Study webcast, can be found at www.fitchratings.com/recovery.

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.