HYPPCO Finance Company Ltd. Downgraded By Fitch Ratings

Business Wire, Jan 22, 2003

Business Editors

CHICAGO--(BUSINESS WIRE)--Jan. 22, 2003

Fitch Ratings has downgraded the rating on one class of notes issued by HYPPCO Finance Company Ltd., a collateralized bond obligation (CBO) backed predominantly by high yield bonds. The current ratings are as follows:

HYPPCO Finance Company Ltd.

-- $211,961,741 class A-2 notes to 'CCC-' from 'BB '.

According to its Jan. 2, 2003 trustee report, HYPPCO Finance Company Ltd.'s collateral includes a par amount of $16.47 million (7.57%) defaulted assets. The deal also contains 30.68% assets rated 'CCC ' or below excluding defaults. The overcollateralization test is failing at 97.91% with a trigger of 125%. Currently, the collateral manager is restricted from trading activity in this transaction.

In reaching its rating actions, Fitch reviewed the results of its cash flow model runs after running several different stress scenarios. Also, Fitch had conversations with Delaware Investment Advisors, the collateral manager, regarding the portfolios.

Fitch will continue to monitor these transactions. Deal information and historical data on HYPPCO Finance Company Ltd. is available on the Fitch Ratings web site at 'www.fitchratings.com'.