Independence IV CDO, Ltd. Rated 'AAA/AA/BBB' by Fitch Ratings.

Business Editors

NEW YORK--(BUSINESS WIRE)--June 26, 2003

Fitch has rated the following notes issued by Independence IV CDO, Ltd. and co-issuer Independence IV CDO, Inc. (collectively referred to as the co-issuers):

-- $120 million class A-1 (series 1) floating-rate notes 'AAA';

-- $120 million class A-1 (series 2) floating-rate notes 'AAA';

-- $40 million class A-2 floating-rate notes 'AAA';

-- $38 million class A-3 floating-rate notes 'AAA',

-- $40 million class B floating-rate notes 'AA',

-- $26 million class C floating-rate notes 'BBB'.

The ratings on the class A-1, A-2, A-3 and class B notes address the timely payment of interest and ultimate payment of principal. The rating on the class C notes addresses the ultimate payment of interest and principal.

The ratings are based upon the capital structure of the transaction, the quality of the collateral, and the overcollateralization and interest coverage tests provided for within the indenture. The ratings address the experience and capabilities of Declaration Management & Research LLC (Declaration) (formerly Independence Fixed Income LLC (IFI)) as the investment manager. All of the notes have legal final maturities in 2038.

The proceeds of the notes will be used to purchase an investment portfolio consisting of approximately 32% in Sub-Prime residential mortgage-backed securities (RMBS), 14% in Prime RMBS, 7% in Manufactured Housing, 34% in asset-backed securities (ABS), 8% in real estate investments trusts (REITs) and 5% in collateralized debt obligations (CDOs).

As outlined in the indenture, class A-1, A-2, A-3, and B noteholders will receive principal repayment from principal proceeds and interest payments from interest proceeds on a pro rata basis. However, upon the breach of a coverage test, the notes will pay principal and interest sequentially beginning with class A-1 principal and interest. In the event of curing a coverage test failure, only the class A-1, A-2 and A-3 notes principal and interest payments will return to being paid on a pro-rata basis.

The investment manager, Declaration, will purchase all investments for the portfolio on behalf of the co-issuers, which are special purpose companies incorporated under the laws of the Cayman Islands and Delaware, respectively. Declaration, which has been investing in mortgage and asset-backed structured products since the inception of the firm in 1989, is a direct subsidiary of Independence Investment, LLC (collectively Independence), which is a wholly owned subsidiary of John Hancock Life Insurance Company. This entity enjoys ratings from Fitch for financial insurer strength of 'AA'. Declaration's individual managers have an average of 12 years of MBS and ABS experience, and they are considered to be the structured finance experts for John Hancock Life Insurance Company. As of Dec. 31, 2002, Independence had assets under management of $18 billion, including $7.4 billion of fixed-income assets, $5.2 billion of which are MBS/ABS.

For more information, please refer to the presale report titled 'Independence IV CDO, Ltd.', available on the Fitch Ratings web site at 'www.fitchratings.com'.