Fitch Downgrades Three Classes of SFA CABS I

Business Wire, March 29, 2007

CHICAGO -- Fitch has downgraded three classes of notes issued by SFA CABS I, Ltd., (SFA I). The following rating actions are effective immediately:

--$58,037,940 class A notes to 'CC/DR3' from 'CCC/DR3';

--$14,000,000 class B-1 notes to 'C/DR5' from 'CC/DR5';

--$8,500,000 class B-2 notes to 'C/DR4' from 'CC/DR4'.

SFA I is a collateralized debt obligation (CDO) that closed on June 22, 2000 and is managed by Structured Finance Advisors (SFA). SFA I is composed of diversified structured finance assets including asset-backed securities (ABS), residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS) and CDOs. Included in this review, Fitch discussed the current state of the portfolio with the asset manager. In addition, Fitch conducted cash flow modeling utilizing various default timing and interest rate scenarios to measure the breakeven default rates going forward relative to the minimum cumulative default rates required for the rated liabilities.

These downgrades reflect the continued deterioration of the collateral and the decline in the coverage of the notes. As of the trustee report dated March 7, 2007 the Fitch weighted average rating factor (WARF) has increased to 53.5 ('B/B-') as compared to 46.2 ('BB/BB-') as of Jan. 2, 2006; and continues to violate its corresponding covenant of 14 ('BBB'). The class A overcollateralization (OC) test has declined to 83.4% from 96.5% and remains below its trigger level of 122%. The class B OC test has in the same period declined to 61.8% from 76%, continuing to violate the covenant of 109.5%. Further, part of the interest due to the class B notes is being paid with principal collections, which further decreases the amount available to pay down the class A notes. Fitch does not anticipate any principal returns for the class B-1 and B-2 notes.

The ratings for classes A, B-1 and B-2 address 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.

Fitch will continue to monitor and review this transaction for future rating adjustments. Additional deal information and historical data are available on the Derivative Fitch web site at www.derivativefitch.com. For more information on the Fitch VECTOR Model, see 'Global Rating Criteria for Collateralised Debt Obligations,' dated Oct. 4, 2006 and also available at www.derivativefitch.com.

Fitch's Distressed Recovery (DR) ratings, introduced in April 2006 across all sectors of structured finance, are designed to estimate recoveries on a forward-looking basis while taking into account the time vale of money. For more information on Distressed Recovery ratings, see the full report ('Structured Finance Distressed Recovery Ratings'), which is available on the Fitch Ratings 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.derivativefitch.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. Fitch means Fitch, Inc., Fitch Ratings, Ltd. and their subsidiaries including Derivative Fitch, Inc. and Derivative Fitch Ltd. and any successor or successors thereto.