Fitch Upgrades 3 Classes from 2 GE Corporate Aircraft Finance Transactions.

CHICAGO -- Fitch upgrades and affirms the following classes from three GE Corporate Aircraft Finance transactions:

GE Corporate Aircraft Financing LLC, Series 2003-1 (GECAF 2003-1)

--Class A-2 affirmed at 'AAA';

--Class A-3 affirmed at 'AAA';

--Class B upgraded to 'AA' from 'A'.

GE Corporate Aircraft Financing LLC, Series 2004-1 (GECAF 2004-1)

--Class A-2 affirmed at 'AAA';

--Class A-3 affirmed at 'AAA';

--Class B upgraded to 'AA' from 'A';

--Class C upgraded to 'A-' from 'BBB'.

GE Equipment Corporate Aircraft Trust, Series 2005-1 (GE ECAT 2005-1)

--Class A-1 affirmed at 'AAA';

--Class A-2 affirmed at 'AAA';

--Class A-3 affirmed at 'AAA';

--Class B affirmed at 'A';

--Class C affirmed at 'BBB'.

As of Dec. 31, 2006, the GECAF 2003-1 trust had not encountered a defaulted loan and as a result boasted 0% net losses through 35 months of performance. The transaction has paid down to a pool factor of .27. Credit enhancement for class B has grown to 30.84% from 8% at close and is provided by a combination of subordination, overcollateralization, and a variable funding certificate. Class B has been receiving principal payments pro-rata with the class A and has paid down to 38% of its initial balance.

Similarly, the GECAF 2004-1 transaction has yet to experience a net loss. The transaction did experience its first defaulted loan in December 2006; however, a full recovery is expected. As of Dec. 31, 2006, GECAF 2004-1 had paid down to a collateral pool factor of .39. Credit enhancement for class B has grown to 17.84% from 5% at close and is provided by a combination of the subordination of class C, overcollateralization, and a reserve account. Class B has been receiving principal payments pro-rata with the class A and has paid down to 35% of its initial balance. Class C benefits from 10.11% of current credit enhancement, up from 2% at close.

GE ECAT 2005-1 has enjoyed similar success to its predecessors, exhibiting no defaults or net losses as of Dec. 31, 2006. Credit enhancement for class B has grown to 9.24% from 4.75% at close and is provided by a combination of the subordination of class C, overcollateralization, and a reserve account. Class B has been receiving principal payments pro-rata with the class A and has paid down to its floor of 75% of its initial balance. Class C is supported by current credit enhancement of 3.88%, up from 1% at close.

In its evaluation of the transactions, Fitch reviewed stress scenarios consistent with each rating level to ensure that the credit enhancement structure was sufficient to ensure payment of the class notes by their respective legal maturity date. Additionally, Fitch ran various scenarios to stress the impact of heavy borrower and balloon loan concentrations present in all three transactions.

In addition to the performance of the transaction structures under various stress scenarios, Fitch sites the high recovery value of the assets securing the loans, the historical performance of the securitizations, and the strength of GE as servicer as rationale for the aforementioned rating actions.

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.