FitchRatings Assigns ABS CDO Asset Manager Ratings to C-BASS; Company is First CDO Asset Manager Rated by Fitch.

Business Editors

NEW YORK--(BUSINESS WIRE)--Sept. 5, 2002

C-BASS, the established leader in servicing and securitizing credit sensitive residential mortgages, today announced that it was the first company to be assigned CDO Asset Manager Ratings from Fitch.

According to Fitch, the ratings are based on "the company's proven asset underwriting and credit selection capabilities and strong, early CDO portfolio performance indicators."

Fitch further noted, "The ratings reflect C-BASS' commitment to the CDO platform as demonstrated by the addition of personnel dedicated to the CDO platform and the company's investments in the non-investment grade CDO bonds and equity. The ratings also reflect the quality of the match between the company's organizational competencies and the structure of the CDOs the company manages; namely static pool, cash flow CDOs collateralized predominantly by RMBS related assets."

Fitch rates CDO asset mangers, by asset class, on a scale of 1 to 4, with 1 being the highest rating. C-BASS' ABS CDO Asset Manager Ratings for each group of criteria factors are summarized as follows: Company and Management Experience - 1.50; Financial Condition - 2.00; Staffing - 1.75; Procedures and Controls - 2.00; Credit Underwriting/Asset Selection - 1.00; Portfolio Management - 2.00; CDO Administration - 2.00; Technology - 1.75; Portfolio Performance - 1.75

"We are very pleased to have been assigned Fitch's first CDO Asset Manager Rating," said John Draghi, Chief Investment Officer, C-BASS. "The high ratings we have received reflect our continued success in the CDO market and our ability to structure and service credit sensitive deals."

C-BASS has closed 4 CDO transactions since March 2001, bringing its total CDO portfolios under management to over $1.4 billion. "The fact that the company invests predominantly in its areas of expertise provides the basis for Fitch's confidence in C-BASS' abilities as an ABS CDO Asset Manager," said Fitch. "All of the CDOs under C-BASS management are tailored to match the company's demonstrated operational competencies in credit analysis, portfolio surveillance, and value added servicing of the underlying collateral which is performed by its wholly-owned subsidiary, Litton Loan Servicing, LP."

C-BASS is a limited liability company capitalized by MGIC Investment Corporation (NYSE:MTG), Radian Group Inc. (NYSE:RDN), and C-BASS management. C-BASS specializes in the acquisition, servicing and securitization of credit-impaired residential mortgages. MGIC Investment Corporation, based in Milwaukee, WI is the parent of Mortgage Guaranty Insurance Corporation (MGIC), and Radian Group Inc., based in Philadelphia, PA is the parent of Radian Guaranty Inc.