���������ֳ�

���������ֳ�-London-24 February 2009: ���������ֳ� has today downgraded seven classes of FAB UK 2004-1 B.V.'s notes, removed the seven notes from Rating Watch Negative (RWN), and assigned Outlooks to the notes as follows:

GBP157,500,00 class A-1E floating-rate notes due 2045 (ISIN: XS0187962104): downgraded to 'BBB' from 'AAA'; removed from RWN; assigned a Stable Outlook

GBP7,500,000 class A-1F zero coupon notes due 2045 (ISIN: XS0187962369): downgraded to 'BBB' from 'AAA'; removed from RWN; assigned a Stable Outlook

GBP10,000,000 class A-2E floating-rate notes due 2045 (ISIN: XS0187962799): downgraded to 'BB' from 'AAA'; removed from RWN; assigned a Stable Outlook

GBP8,800,000 class A-3E floating-rate notes due 2045 (ISIN: XS0187962872): downgraded to 'B' from 'AA' ; removed from RWN; assigned a Negative Outlook

GBP4,700,000 class A-3F fixed-rate notes due 2045 (ISIN: XS0187963094): downgraded to 'B' from 'AA' ; removed from RWN; assigned a Negative Outlook

GBP6,076,406 class S1 combination notes due 2045 (ISIN: XS0187963334): downgraded to 'BBB' from 'AAA'; removed from RWN; assigned a Stable Outlook

GBP4,338,716 class S2 combination notes due 2045 (ISIN: XS0187963508): downgraded to 'B' from 'AA' ; removed from RWN; assigned a Negative Outlook

The downgrades reflect ���������ֳ�'s view on the credit risk of the rated tranches following the release of the agency's revised Structured Finance (SF) CDO rating criteria on 16 December 2008, as well as credit deterioration to the collateral pool that has occurred since the last review.

The application of the new SF CDO rating criteria incorporates ���������ֳ�'s view on industry and vintage concentration risks and the propensity for low recoveries upon default, particularly for thin tranches. Although the application of the new criteria has significantly impacted the transaction's ratings, credit deterioration in the portfolio has particularly affected the junior tranches.

As per the trustee report dated 31 December 2008, all coverage tests are passing. The portfolio contains 85 assets from 71 obligors, with the largest exposure accounting for approximately 3% of the outstanding portfolio amount, and the three largest obligors accounting for 9% of the outstanding portfolio amount. The largest single industry is RMBS with 50% of the portfolio volume. The two largest vintages are 2006 and 2004 making up 27% and 26% of the portfolio respectively, while the three largest country concentrations are the United Kingdom, the USA and the Netherlands making up 86%, 8% and 3% of the portfolio respectively.

In conducting its analysis, ���������ֳ� makes a three notch downward adjustment for any names on RWN for default analysis under its Portfolio Credit Model. On an adjusted basis approximately 27% of the assets are now treated as sub-investment grade. The weighted average portfolio quality is 'BB+' and 12% of the portfolio is on RWN. Four assets making up 6% of the portfolio are currently rated 'CCC+' and below on an unadjusted basis. Three of these assets are US SF CDOs and are expected to produce a limited interest cash flow before defaulting with no principal recovery.

While the downgrade of the class A1, A2 and S1 combination notes is driven by ���������ֳ�'s revised criteria, the downgrade of class A3 and S2 combination notes is linked to the transaction's actual performance. In February 2008 when the junior notes were placed on RWN, there were no 'CCC+' and below assets and only 15% of the portfolio was sub-investment grade compared with four 'CCC+' and below assets and 27% sub-investment grade assets now. Although the manager's strategy has increased the par coverage levels, given the current macroeconomic climate, ���������ֳ� expects further negative portfolio migration which could result in a higher percentage of 'CCC'-rated assets. ���������ֳ� notes that there is limited timeframe to increase par coverage levels further as the reinvestment period ends in four months. Furthermore, due to the way class A3 notes are structured, the notes will not receive interest from principal proceeds until class A1 and A2 are redeemed in full. While this protects the A1 and A2 notes, it also increases the likelihood that the A3 notes will suffer interest shortfalls. In ���������ֳ�'s view, whilst not imminent, the full recovery of the class A3 notes in a stressed environment is unlikely.

FAB UK 2004-1 B.V. is a securitisation of mainly European structured finance assets with a total note issuance of GBP204.5m invested in a target portfolio of GBP200m. The portfolio is actively managed by Gulf International Bank (UK) Limited (GIB, rated 'CAM2-' ((CAM2 minus)) on ���������ֳ�'s CDO Asset Manager Rating scale).

Further information on the performance of this transaction can be found on the agency's CDO S.M.A.R.T. analysis tool, available on the subscription website, .

Contacts: Jeffery Cromartie, CFA, London, Tel: +44 (0) 20 7664 0072; Andrew Higham: +44 (0) 207 417 6326.

Media Relations: Julian Dennison, London, Tel: +44 020 7682 7480, Email: julian.dennison@fitchratings.com.