Fitch Upgrades Capital Lease Funding Securitization, L.P

Business Wire, Jan 9, 2008

CHICAGO -- Fitch Ratings upgrades Capital Lease Funding Securitization, L.P.'s corporate credit-backed pass-through certificates, series 1997-CTL-1, as follows:

--$9.8 million class B to 'AAA' from 'AA '.

In addition, Fitch affirms the following classes:

--Interest-only class IO at 'AAA';

--$15.5 million class C at 'A';

--$6.1 million class D at 'BBB-';

--$6.8 million class E at 'B '.

The $1.9 million class F and the $1.3 million class G certificates remain at 'CCC'.

The upgrade is due to transaction paydown and subsequent increase in credit enhancement. As of the December 2007 distribution date, the pool has paid down 67.9% to $41.5 million from $129.4 million at issuance. Currently 79.4% of the underlying credit tenants are below investment grade, compared to 30.4% at issuance. There have been no specially serviced loans and no realized losses since issuance.

The pool's tenants consist of Circuit City (32.5%), Rite Aid Corp. (17.3%), RadioShack Corp. (14.8%), New York State Electric & Gas Corp. (11.1%), Food Lion (Delhaize America Inc.) (8.2%), Walgreen Co. (6.4%), Pep Boys (5.0%), CVS Corp. (3.1%), and HCA Inc. (1.7%).

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