S&P Assigns Katonah IV Ltd. Notes Preliminary Ratings

Business Wire, Feb 12, 2003

Business Editors

NEW YORK--(BUSINESS WIRE)--Feb. 12, 2003

Standard & Poor's Ratings Services today assigned its preliminary ratings to Katonah IV Ltd./Katonah IV Inc.'s class A, B, C, and D floating- and fixed-rate notes (see list).

The preliminary ratings are based on information as of Feb. 12, 2003. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings.

The preliminary ratings reflect:

-- The expected commensurate level of credit support in the form of subordination to be provided by the notes junior to the respective classes and by the preferred shares and overcollateralization;

-- The cash flow structure, which is subject to various stresses requested by Standard & Poor's;

-- The experience of the collateral manager;

-- The coverage of interest rate risks through hedge agreements; and

-- The legal structure of the transaction, which includes the bankruptcy remoteness of the issuer.

Katonah IV Ltd./Katonah IV Inc. is the fourth cash flow arbitrage CLO brought to market by Katonah Capital LLC.

A copy of Standard & Poor's complete presale report for this transaction can be found on RatingsDirect, Standard & Poor's Web-based credit analysis system, at www.ratingsdirect.com. The presale can also be found on Standard & Poor's Web site at www.standardandpoors.com. Select Fixed Income. Then, under Browse by Sector, select Structured Finance and find the article under Presale Credit Reports.

PRELIMINARY RATINGS ASSIGNED

Class               Rating        Amount ($000s)
A                   AAA                  265,000
B                   A-                    32,750
C                   BBB                   14,000
D-1                 BB                     2,250
D-2                 BB                     4,500
E                   N.R.                   5,250
Preferred shares    N.R.                  26,250

Copyright 2003, Standard & Poor's Ratings Services