Fitch Ratings Affirms ACAS Business Loan Trust 2004-1

Business Wire, June 9, 2006

NEW YORK -- Fitch affirms four classes of notes issued by ACAS Business Loan Trust 2004-1, (ACAS 2004-1). The following rating actions are effective immediately:

-- $302,271,976 class A notes affirmed at 'AAA';

-- $33,750,000 class B notes affirmed at 'AA';

-- $73,750,000 class C notes affirmed at 'A';

-- $50,000,000 class D notes affirmed at 'BBB'.

ACAS 2004-1 is a collateralized loan obligation (CLO) that closed Dec. 2, 2004 and is managed by American Capital Strategies, Ltd. ACAS 2004-1 has a two year Replenishment Period ending in Jan. 2007, during which time principal proceeds may be reinvested in additional loans. Loan substitution is limited to defined circumstances not to exceed 20% of the original portfolio balance. The portfolio is currently composed of approximately 50% subordinated loans, with the remaining balance divided between senior unsecured and senior secured obligations.

These affirmations are the result of stable collateral performance as well as stable credit enhancement levels. Between the last review in Dec. 2005 and the most recent trustee report dated April 25, 2006, the weighted average credit quality of the loans in the portfolio has improved marginally. According to the most recent trustee report, there have not been any substitutions made and there is one delinquent loan that comprises 1.6% of the portfolio. The class A notes have received approximately $228,000 in principal repayment, or about 0.1% of its original balance.

The rating of the class A notes addresses the likelihood that investors will receive full and timely payments of interest, as per the governing documents, as well as the stated balance of principal by the legal final maturity date. The ratings of the class B and class C notes address the likelihood that investors will receive ultimate and compensating interest payments, as per the governing documents, as well as the stated balance of principal by the legal final maturity date. The rating of the class D notes addresses the likelihood that investors will receive their stated balance of principal by the legal final maturity date.

Fitch will continue to monitor and review this transaction for future rating adjustments. Additional deal information and historical data are available on the Fitch Ratings web site at 'www.fitchratings.com'. For more information on the Fitch VECTOR Model, see 'Global Rating Criteria for Collateralised Debt Obligations,' dated Sept. 13, 2004 and also available on Fitch's web site at 'www.fitchratings.com'.

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.