Fitch Ratings Upgrades and Affirms Indosuez Capital Funding VI.

NEW YORK -- Fitch Ratings upgrades two classes of notes and affirms four classes of notes issued by Indosuez Capital Funding VI, Ltd. (Indosuez VI). The following rating actions are effective immediately:

--$96,187,017 class A-Ib floating-rate senior term notes affirmed at 'AAA';

--$18,000,000 class A-II floating-rate senior notes upgraded to 'AAA' from 'AA';

--$33,000,000 class B floating-rate senior subordinate notes upgraded to 'AA' from 'A';

--$30,000,000 class C floating-rate senior subordinate notes affirmed at 'BBB+';

--$10,000,000 class D-1 fixed-rate subordinate notes affirmed at 'BB';

--$ 4,000,000 class D-2 floating-rate subordinate notes affirmed at 'BB'.

Indosuez VI is a collateralized debt obligation (CDO) managed by Lyon Capital Management LLC., which closed Sept. 14, 2000. Indosuez VI is composed of high yield loans (65%) and high yield bonds (35%). 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 relative to the minimum cumulative default rates for the rated liabilities.

Indosuez VI has benefited from substantial deleveraging of the capital structure since the last rating review on Feb. 14, 2004. On the Sept. 14, 2004 payment date, the $75 million class A-Ia revolving notes were paid-in-full, and on the June 14, 2005 payment date approximately $176.8 million of the $273 million class A-Ib notes were redeemed in an effort to cure the failing class C and class D overcollateralization (OC) tests. As per the June 14, 2005 note valuation report, pay-downs resulted in class C and class D OC test improvement to 109.4% and 101.4% from 104.8% and 100.8%, versus triggers of 105% and 102.2%, respectively. Classes A and B OC ratios were exceeding their respective triggers as of the May 31, 2005 trustee report. In addition, the pay-downs reduced negative carry associated with maintaining a large cash balance and improved credit enhancement to the rated notes.

Since the last review, the collateral has continued to perform. The weighted average rating has remained stable at 'B'. Defaulted assets represented 4.7% of the $200.1 million of aggregate principal amount of the collateral, and assets rated 'CCC+' or lower represented approximately 11.9%, excluding defaults, as of the May 31, 2005 trustee report.

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 on Fitch's web site.

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.