Fitch Downgrades 9 Classes from GSC ABS CDO 2006-2m Ltd.

NEW YORK--(Business Wire)--
Fitch Ratings has downgraded and removed from Rating Watch
Negative nine classes of notes issued by GSC ABS CDO 2006-2m Ltd. The
following rating actions are effective immediately:

--$189,976,506 class A-1A notes downgraded to 'CCC' from 'BBB+'
and removed from Rating Watch Negative;

--$125,000,000 class A-1B notes downgrade to 'CC' from 'B+' and
removed from Rating Watch Negative;

--$13,500,000 class A-2 notes downgraded to 'CC' from 'B' and
removed from Rating Watch Negative;

--$56,500,000 class B notes downgraded to 'CC' from 'CCC' and
removed from Rating Watch Negative;

--$14,500,000 class C notes downgraded to 'CC' from 'CCC' and
removed from Rating Watch Negative;

--$ 22,500,000 class D notes downgraded to 'C' from 'CC' and
removed from Rating Watch Negative;

--$ 21,000,000 class E notes downgraded to 'C' from 'CC' and
removed from Rating Watch Negative;

--$ 4,652,423 class F notes downgraded to 'C' from 'CC' and
removed from Rating Watch Negative;

--$ 4,652,423 class G notes downgraded to 'C' from 'CC'.

Fitch's rating actions reflect the collateral deterioration within
the portfolio, specifically from subprime residential mortgage backed
securities (RMBS).

GSC ABS CDO 2006-2m, Ltd. is a cashflow collateralized debt
obligation (CDO) with hybrid features which closed May 31, 2006, and
is managed by GSC Group. The portfolio is composed primarily of
subprime RMBS (80.0%) and Structured Finance (SF) CDOs with exposure
to subprime RMBS (10.3%). Subprime RMBS of the pre-2005, 2005, 2006,
and 2007 vintages account for approximately 7.6%, 38.2%, 33.1%, and
1.1% of the portfolio, respectively. SF CDOs of the 2005 and 2006
vintages account for approximately 1.1% and 9.2% of the portfolio,
respectively.

Since the last review conducted in November 2007, approximately
73.0% of the portfolio has been downgraded. The portion of the
portfolio rated below investment grade is now 82.3% while 6.1% of the
portfolio is currently on Rating Watch Negative.

The collateral deterioration has caused each of the class A/B/C,
D, E, and F OC tests to fall below 100% and fail their respective
triggers. The failures of these tests are diverting interest proceeds
that would otherwise be payable to the class D, E, F and G notes, to
pay down the class A-1A notes. Consistent with the current ratings,
Fitch expects the class D, E, F, and G notes to receive only
capitalized interest payments in the future with no ultimate principal
recovery.

The ratings on the class A-1A, A-1B, A-2, B and C notes address
the timely receipt of scheduled interest payments and the ultimate
receipt of principal, as per the transaction's governing documents.
The ratings on the class D, E, F and G notes address the ultimate
receipt of interest payments and principal, as per the transaction's
governing documents.

Fitch is reviewing its SF CDO approach and will comment separately
on any changes and potential rating impact at a later date. Fitch will
continue to monitor and review this transaction for future rating
adjustments. Additional transaction information and historical data
are 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.

Fitch Ratings, New York
Kevin Kendra, 212-908-0760
Brian Vorderbrueggen, 212-908-9102
or
Media Relations:
Julian Dennison, +44 020 7682 7480, London
Sandro Scenga, 212-908-0278

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