Fitch Ratings Upgrades One Class of Allmerica CBO I, Ltd.

NEW YORK -- Fitch Ratings upgrades one class of notes issued by Allmerica CBO I, Ltd., (Allmerica). The following rating actions are effective immediately:

-- $111,325,388 senior notes upgraded to 'BB' from 'B+';

-- $78,353,293 second priority senior notes remains at 'C'.

Allmerica is a collateralized bond obligation (CBO) managed by Allmerica Asset Management, Inc. which closed June 11, 2005. Allmerica is composed of 77.1% high yield corporate bonds, 13.6% structured finance and 9.4% sovereign. Included in this review, Fitch discussed the current state of the portfolio with the asset manager and their portfolio management strategy going forward. 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.

Since last review, the credit quality of the portfolio has stabilized and the credit enhancement to the senior note has improved. Allmerica continues to fail its overcollateralization (OC) test and therefore continues to divert excess interest proceeds towards the redemption of the senior notes. Since close, the senior notes have redeemed approximately 57.1% of the original balance and since last review, the notes have redeemed approximately 28.2% of the original balance. As a result of the redemption of the notes, the senior OC test increased to 107.8% from 103.5% with a trigger of 126.5%.

The second priority note has capitalized $21 million in interest and is cut off from the receipt of both interest and principal monies for the foreseeable future. In Fitch's modeling simulations, this note may receive a small recovery at or near maturity.

The rating of the senior notes addresses 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 second priority senior notes addresses 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.

As a result of this analysis, Fitch has determined that the current ratings assigned to the senior notes no longer reflect 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, also available at www.fitchratings.com.

Fitch's rating definitions are available on the agency's public web site, www.fitchratings.com. Published ratings, criteria and methodologies and relevant policies and procedures are also available from this site, at all times. This document will remain on the public site for seven days.