Fitch Takes Various Actions on Atherton Franchise Loan Funding Trusts

Business Wire, March 6, 2008

NEW YORK -- Fitch Ratings has taken the following rating actions on the Atherton Franchise Loan Funding Trusts listed below:

Atherton Franchise Loan Funding 1997-A

--Class A-1 currently rated at 'AAA', remains on Rating Watch Negative;

--Class A-2 currently rated at 'AAA', remains on Rating Watch Negative;

--Class B remains at 'CCC/DR1';

--Class C remains at 'C/DR6'.

Class A-1 and A-2 ratings are based on a financial guaranty insurance policy from MBIA Insurance Corp. (MBIA).

Atherton Franchise Loan Funding 1998-A

--Class A-X affirmed at 'AAA';

--Class B affirmed at 'AA';

--Class C affirmed at 'BB';

--Class D affirmed at 'B/DR1';

--Class E remains at 'CCC'/DR3';

--Class F remains at 'C/DR6'.

Atherton Franchise Loan Funding 1999-A

--Class A-2 affirmed at 'A';

--Class A-X affirmed at 'A';

--Class B affirmed at 'BBB';

--Class C remains at 'CCC/DR1';

--Class D remains at 'C/DR3';

--Class E remains at 'C/DR6';

--Class F remains at 'C/DR6'.

Fitch's analysis incorporated anticipated losses on defaulted collateral given the servicer's and Fitch's recovery expectations. Fitch's recovery expectations are based on historical collateral-specific recoveries experienced in the franchise loan asset-backed securities (ABS) sector. The resulting anticipated collateral losses were then applied to the transaction structure, enabling Fitch to asses the impact of the losses on the securities and available credit enhancement.

As a result of the aforementioned analysis of anticipated losses, credit support was found to be consistent with Fitch's previous review leading to the affirmation of the current ratings.

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 value 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.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.