Fitch Ratings Upgrades Crest 2004-1, Ltd.

NEW YORK -- Fitch Ratings upgrades 10 classes and affirms 4 classes of the notes issued by Crest 2004-1, Ltd. (Crest) as follows:

--$179,221,464 class A senior secured floating-rate term notes affirmed at 'AAA';

--$44,000,000 class B-1 second priority floating-rate term notes upgraded to 'AAA' from 'AA';

--$8,491,250 class B-2 second priority fixed-rate term notes upgraded to 'AAA' from 'AA';

--$2,710,000 class C-1 third priority floating-rate term notes upgraded to 'AA+' from 'A+';

--$23,000,000 class C-2 third priority fixed-rate term notes upgraded to 'AA+ from 'A+';

--$17,140,000 class D fourth priority fixed-rate term notes upgraded to 'AA' from 'A';

--$13,000,000 class E-1 fifth priority floating-rate term notes upgraded to 'A+' from 'BBB+';

--$12,710,000 class E-2 fifth priority fixed-rate term notes upgraded to 'A+' from 'BBB+';

--$6,427,500 class F sixth priority floating-rate term notes upgraded to 'BBB+' from 'BBB';

--$2,000,000 class G-1 seventh priority floating-rate term notes upgraded to 'BBB-' from 'BB+';

--$9,783,750 class G-2 seventh priority fixed-rate term notes upgraded to 'BBB-' from 'BB+';

--$7,520,000 class H-1 eighth priority floating-rate term notes affirmed at 'BB';

--$1,050,000 class H-2 eighth priority fixed-rate term notes affirmed at 'BB';

--$89,628,706 preferred shares affirmed at 'B'.

Crest is a collateralized debt obligation (CDO), which closed Nov. 18, 2004. It is supported by a static pool of commercial mortgage-backed securities (CMBS) (93.5%), senior unsecured real estate investment trust securities (1.0%), and CDOs (5.5%). Structured Credit Partners, LLC, a wholly owned subsidiary of Wachovia Corporation, selected the initial collateral and serves as the collateral administrator.

The upgrades are driven primarily by the improved credit quality of the portfolio and the seasoning of the collateral. Since issuance, 19.2% of the portfolio has been upgraded by a weighted average of 1.8 notches and 0.9% downgraded by a weighted average of 2.95 notches. All overcollateralization and interest coverage ratios have remained stable since inception. There are currently no defaulted assets in the portfolio.

As of the June 2006 trustee report, principal distributions have reduced the class A balance by approximately $5 million. In addition, approximately $6.8 million in interest distributions have been allocated to the preferred shares, reducing the rated balance by 7% to $89.6 million.

The rating on the classes A and B notes addresses the timely payment of interest and ultimate payment of principal. The ratings on the classes C, D, E, F, G, and H notes address the likelihood of investors receiving ultimate payment of interest and ultimate payment of principal. The rating of the preferred shares addresses the likelihood that investors will receive the ultimate return of the aggregate outstanding amount of principal only 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 the Fitch VECTOR model, see 'Global Rating Criteria for Collateralised Debt Obligations,' dated Sept. 13, 2004, 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.