TEXT-Fitch affirms Crest Exeter Street 2004-1

Oct 3 - Fitch Ratings has affirmed 10 classes issued by Crest Exeter StreetSolar 2004-1, Ltd./Corp (Crest Exeter 2004-1) as a result of increased creditenhancement to the notes due to

repayment on the underlying collateral. Acomplete list of rating actions follows at the end of this release.

Since Fitch's last rating action in October 2011, approximately 15.1% of theunderlying collateral has been downgraded and 5.4% upgraded. Currently, 57% ofthe portfolio has a Fitch derived

rating below investment grade and 24% has arating in the 'CCC' category and below, compared to 39.9% and 13.9% at the lastrating action. Over this time, the class A-1 and A-2 notes have

received $16.5million for a total of $178.8 million in principal paydowns since issuance.

This transaction was analyzed under the framework described in the report'Global Rating Criteria for Structured Finance CDOs' using the Portfolio CreditModel (PCM) for projecting future

default levels for the underlying portfolio.The default levels were then compared to the breakeven levels generated byFitch's cash flow model of the CDO under the various default timing and

interestrate stress scenarios, as described in the report 'Global Criteria for Cash FlowAnalysis in CDOs'. Fitch also analyzed the structure's sensitivity to the assetsthat are distressed,

experiencing interest shortfalls, and those with near-termmaturities. Based on this analysis, the class A through D notes' breakeven ratesare generally consistent with the ratings assigned

below.

For the class E notes, Fitch analyzed the class' sensitivity to the default ofthe distressed assets ('CCC' and below). Given the high probability of defaultof these assets and expected

limited recovery prospects upon default, the classE notes have been affirmed at 'CCCsf', indicating that default is possible.

The Stable Outlook on the class A and B notes reflects Fitch's view that thetransaction will continue to delever. The Negative Outlook on the class C and Dnotes reflects the potential for

adverse selection as the portfolio continues toamortize. Fitch does not assign Outlooks to classes rated 'CCC' and below.Crest Exeter 2004-1 is a cash flow commercial real estate

collateralized debtobligation (CRE CDO) which closed on April 29, 2004. The collateral is composedof 48.9% commercial mortgage backed securities (CMBS), 27.2% commercial realestate loans

(CREL), 19.2% real estate investment trusts (REITs), and 4.7%structured finance CDOs (SF CDOs).

--$69,803,761 class A-1 at 'Asf'; Outlook Stable;--$17,369,011 class A-2 at 'Asf'; Outlook Stable;--$8,377,070 class B-1 at 'BBBsf'; Outlook to Stable from Negative;--$9,214,777 class B-2 at

'BBBsf'; Outlook to Stable from Negative;--$1,675,414 class C-1 at 'BBsf'; Outlook Negative;--$13,759,337 class C-2 at 'BBsf'; Outlook Negative;--$5,026,242 class D-1 at 'Bsf'; Outlook

Negative;--$11,371,872 class D-2 at 'Bsf'; Outlook Negative;--$3,769,681 class E-1 at 'CCCsf';--$5,445,095 class E-2 at 'CCCsf'.

'. The ratings abovewere solicited by, or on behalf of, the issuer, and therefore, Fitch has beencompensated for the provision of the ratings.

Applicable Criteria and Related Research:--'Global Structured Finance Rating Criteria' (June 6, 2012);--'Global Rating Criteria for Structured Finance CDOs' (Oct. 3, 2012);--'Global Criteria

for Cash Flow Analysis in CDOs' (Sept. 13, 2012).

Applicable Criteria and Related Research:Global Structured Finance Rating CriteriaGlobal Rating Criteria for Structured Finance CDOsGlobal Criteria for Cash Flow Analysis in CDOs(New York

Ratings Team)

((e-mail: [email protected]; Reuters Messaging:[email protected]; Tel:1-646-223-6330;))

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