Fitch Downgrades Fremont's IDR to 'D'

Business Wire, April 17, 2008

NEW YORK -- Fitch Ratings has downgraded Fremont General Corporation (FMT) ratings and removed the Negative Rating Outlook as follows:

--Long-term Issuer Default Rating (IDR) to 'D' from 'CC';

--Individual Rating to 'F' from 'E'.

Fitch's action follows FMT's receipt of a written notice from the trustee for the company's series B 7.875% senior notes (notes), due March 2009, that the majority holders of the notes has agreed to forbear acceleration of the obligations owed under notes. Fitch considers the notes in default as FMT has failed to make timely payment of principal and/or interest under the terms of the indenture. Specifically, FMT did not pay a semi-annual interest payment of approximately $6.6 million, payable on March 17, 2008. Under the terms of the indenture, failure to pay semi-annual interest payments within 30 days of the due date or April 16, 2008, constitutes an event of default. While majority holders and the company explore options to restructure the notes, the forbearance may be terminated by the trustee or majority holders at any time.

Today's rating action has no impact on the ratings of Fremont Investment & Loan (FIL), FMT's banking subsidiary.

The following ratings have been affirmed:

Fremont General Corp:

--Senior unsecured debt at 'C/RR6'

Fremont General Financing I

--Preferred securities at 'C/RR6'.

The following ratings remain unchanged and remain on Rating Watch Positive:

Fremont Investment & Loan:

--Long-term deposits at 'CCC/RR4';

--Short-term Deposits at 'C'.

The following ratings have been affirmed and withdrawn:

Fremont General Corporation:

--Short-term IDR at 'C';

--Support Rating at '5'

--Support Floor at 'NF'.

The following ratings remain unchanged and maintain a Negative Rating Outlook:

Fremont Investment & Loan

--Long-term IDR at 'CC'

--Short-term IDR at 'C';

--Individual Rating at 'F'

--Support Rating at '5';

--Support Floor at 'NF'.

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.